The State Securities Commission allowed the new company, a synthetic fiber manufacturer, to issue three million shares at a reference price of VND18,000 (USD 2.8) each.
The company and its major shareholder, Red River Holding, held a roadshow on 26 Nov. 2014 to introduce the potential of the stock.
After holding the IPO and issuing its audited financial report for this year, Century Synthetic Fiber will file for the listing of its shares at the HCM City Stock Exchange sometime in the second quarter of 2015.
The IPO aims to raise funds for the company's VND729-billion (USD 34.3-million) factory expansion plan which began last May at Trang Bang in Tay Ninh Province, company officials said.
The company also plans to put 50 % of the factory's capacity to commercial use in the third quarter of next year.
According to Dang Trieu Hoa, chairman of the company's board of directors, Century Synthetic Fiber had to enhance capacity because of the increasing demand of its clients, all suppliers of large brands such as Nike, Adidas and Uniqlo, as well as Zara and The North Face.
From 2008 to 2013, the company's revenues increased by 39 % and its profits, by 65 %. It expects the expansion to help increase by about 20 % its revenues, to VND2.3 trillion (USD 108.4 million), and its profits, to VND132 billion (USD 6.2 million), in 2016.
In the first nine months of 2014, its revenues reached more than VND1 trillion (USD 47.1 million) and its profits, VND82 billion (USD 3.8 million).