Officially known as Food Company of Ho Chi Minh City Ltd., Foodcosa will offer around 6.47 million shares, or a 22 percent stake, to strategic partners. Another 3.24 million shares will be put up for auction starting at VND12,000 (53 US cents) per share.
Running seven food factories with a combined output of 412,000 tons a year, the company generates a majority of its revenue by exporting and selling rice to local buyers.
It also operates a chain of 38 FoodcoMart convenience stores around the city, besides three gas stations.
The company reported a loss of VND70 billion ($3.13 million) in 2014 after acquiring the struggling food and agricultural materials importer and exporter Binh Tay under the order of its parent company Vietnam Southern Food Corp.
Foodcosa recorded a profit of VND7.4 billion ($331,000) last year.