The mobilized capital is expected to be used to focus on expanding 2 factories in Lao Cai and Lang Son to intensively produce products from cinnamon and star anise with machinery technology.
On April 7, 2022, Vietnam Staraniseed Cassia Manufacturing And Exporting Joint Company (Vinasamex) kicked off the initial public offering (IPO) roadmap in 2026 with an event calling for private investment capital.
The company offered 15% shares with a total value of 135 billion VND, equivalent to the issuance price of 38,000 VND/share. The mobilized capital is expected to be used to focus on expanding 2 factories in Lao Cai and Lang Son to intensively produce products from cinnamon and star anise with modern machinery technology.
Vinasamex operates in the field of manufacturing and exporting cinnamon, anise and spices. After 10 years of establishment, it has become a leading premium cinnamon brand in Vietnam, building and producing through a closed value chain, and fostering sustainable partnerships with highland farmers. Vinasamex represents the elevation of Vietnamese cinnamon products in the international market.
From 2017 until now, the company has continuously expanded its production model of cinnamon, anise and organic spices. From 868 hectares of organic cinnamon and anise, associated with 418 households in 2017, Vinasamex has now built 4,367 hectares of organic cinnamon, anise, and turmeric material areas, associated with 2,115 households in the provinces of Yen Bai, Lang Son, Lao Cai and Bac Kan. Affiliated people receive 100% output consumption at prices higher than market prices,ensuring stable incomes and providing them peace of mind in production, ultimately leading to improved living standards.
Currently, Vinasamex is building a large capacity spice processing factory in the Yen Bai cinnamon raw material area. The factory’s operation has created stable, regular jobs for nearly 100 local workers and more than 300 seasonal workers, many of whom are ethnic minorities. The company’s four main raw material areas are currently in Yen Bai, Lang Son, Lao Cai, and Bac Kan.
According to the plan, the company will build a factory in Lao Cai on an area of 2.2 hectares with a processing capacity of 2,000 tons of fresh cinnamon per year; and will invest in a production line designed to produce 140 tons of cinnamon essential oil annually. In Lang Son, the company plans to build a 1.6 hectare factory with a design capacity of 2,000 tons of cinnamon, 1,000 tons of anise and 80 tons of essential oil in the middle of traditional anise growing areas. In phase 3, Vinasamex will build an additional 10-hectare factory in Lao Cai with a capacity of up to 10,000 tons of cinnamon annually.
According to the IPO roadmap, after raising capital from angel investors in 2022, the company continues to conduct series A – VC, series B – PE and series C – PE capital calls before making the offering shares to the public in 2026.
Explaining the choice to spend 4 years for the pre-IPO process, Ms. Nguyen Thi Huyen, General Director of Vinasamex said that 4 years is a suitable roadmap for the company to conduct an IPO, take it step by step, ensuring a solid foundation at each stage.
IPO is also a way for the company to reach its goal of becoming the first company in the field of organic agricultural products and spices in Vietnam to have transparency and become a listed company aiming to mobilize capital on the stock market contract.
“We want to create a playground for investors to participate in a business model that creates social impact, in addition to the profit factor. At the same time, becoming the first brand in the field of organic spices and flavors in Vietnam to list on the stock exchange, inspiring other businesses to change their thinking and business goals. After listing on the stock exchange in Vietnam, we will list on the international stock exchange to affirm Vietnam’s position and brand, especially in the field of agricultural products,” Vinasamex CEO emphasized.
In 2021, Vinasamex revenue will still increase by nearly 60%, reaching 275 billion VND. Profit after tax reached 20.8 billion VND, 2.77 times higher than the previous year. In the period 2018-2021, average growth in revenue and profit after tax reached 231% and 477%, respectively. Total assets by the end of 2021 reach 267 billion VND. Loan capital contributes more than 40.4% of the enterprise’s capital.
According to Vinasamex’s CEO, 50% of the annual profits are expected to be spent paying dividends to shareholders, 30% for reinvestment and 20% for provisions. Vinasamex’s operating model follows the value chain including farmers, factories, and customers. Quality products can be traced back to their origin and the growing area can be controlled. Prices for products with organic certification are much higher than usual. Vinasamex currently has organic certification on an area of 4,000 hectares, so there is still great room for expansion.
Also at the event, Vinasamex signed and announced partner Americata as the sponsor to establish and operate Vinasamex in the US. This is also the world’s largest spice consumption market that Vinasamex has entered with three trademarks registered for protection in this country.