(Dec 12): Vietnam’s State Capital Investment Corp. failed to sell the entire portion of its Vietnam Dairy Products JSC stake auctioned Monday, raising about S$716 million after Fraser & Neave and its unit acquired two-thirds of the shares offered.

SCIC, as the government’s investment arm is commonly known, raised about 11.3 trillion dong (S$716 million) from the sale of about 78.4 million Vinamilk shares at an auction organised by the Ho Chi Minh City Stock Exchange, according to information posted on the bourse’s website. SCIC, which had offered about 130.63 million shares, or 9% of Vinamilk stake, still holds 39.6% of the company after the sale.

The result was “very much expected” because just two institutional investors participated in the sale and the bidding process was complicated, said Ho Chi Minh City-based Michel Tosto, managing director, head of institutional sales and brokerage at Viet Capital Securities JSC.

“Investors had expected the shares to be offered at discount, as per international practice, but they were offered at premium so they were unimpressed, ” he said.

With the shares purchase, F&N increased its stake in Vinamilk to 16.4%.

Shares of Vinamilk fell the first time in three days Monday, dropping 1.% to 133,700 dong at close.

Foreign investors have long awaited SCIC’s divestment of the highly coveted Vinamilk, the nation’s largest company by market value. The dairy company in July received approval from the securities commission to remove the 49% foreign ownership limit on its stocks, paving the way for investors to buy more.

“Investors, mainly retail, are disappointed as Vinamilk shares are under-subscribed,” Tosto said. “We believe that the government will keep the unsold shares for several years before offering them again.”