A corner of Binh Son Refining and Petrochemical Co Ltd (Source: vietnamfinance.vn) Under the equitisation plan approved by Prime MinisterNguyen Xuan Phuc on December 8, BSR will sell nearly 241.6 million shares,equivalent to 7.79 percent of its charter capital, to the public at an initialprice of 14,600 VND per share (0.64 USD).
At this price, BSR is valued at 2 billion USD, making it thelargest firm ever to hold an IPO.
PetroVietnam will retain 43 percent of BSR’s charter capitalwhile a maximum of 49 percent will be sold to strategic investors in threemonths after the IPO. About 0.21 percent of shares will be offered to thecompany’s employees.
After sending a letter of invitation to purchase shares tointerested investors, BSR has worked directly with 17 funds and five partners,which are large corporations and want to become BSR’s strategic shareholders.
Two foreign petrochemical companies – World Petro (UnitedStates) and MacronPetro Petroleum (Africa) – have expressed interest in buyinga 49 percent stake.
Other international oil companies including Repsol (Spain),representatives of ASEAN Council on Petroleum (ASCOPE) such as PetroleumBRUNEI,Indonesia’ Pertamina and Singapore’s SRC have also visited the company toexplore the investment opportunity.
In addition, another State-owned company, Vietnam NationalPetroleum Group (Petrolimex), also expressed its intention to buy BSR’s sharesafter the two parties signed the cooperation agreement in August this year.
BSR chairman Nguyen Hoài Giang said the two companies hadconsidered entering a strategic co-operation in the near future but they andPetrolimex’s foreign partner JX Nippon Oil & Energy would have to sit anddiscuss issues including the size of share purchase and other specificconditions.
Strategic investors in BSR must have a minimum chartercapital of 10 trillion VND and be profitable during the most recent years withno aggregated loss. Priority would be given to investors with experience inoperating refineries and oil distribution to support BSR’s oil refinery plantafter its privatisation.
The Dung Quat refinery operator reported total revenues of 71.9trillion VND (3.15 billion USD) in the first 11 months of this year, up 15.8percent over the yearly plan. It contributed 9.06 trillion VND to the Statebudget, 26.3 percent over the yearly goal.
Its profit is expected to top 8 trillion VND (351 millionUSD) by year-end with the return on equity (ROE) ratio reaching 25-26 percent
The company will hold two road shows to provide detailedinformation to investors, one in HCM City on December 20 and another in Hanoion January 5.-VNA/ VNS
VNA
