Wednesday, December 13 2017

VietNamNews

BSR to sell shares, seek out experienced investors

Update: May, 15/2017 - 09:00
Dung Quất Refinery in Quảng Ngãi Province. — VNA/VNS Photo Huy Hùng
Viet Nam News

HÀ NỘI — Bình Sơn Refining and Petrochemical Company Limited (BSR), the operating and managing unit for the Dung Quất Refinery, has sent invitations to 15 domestic and foreign investment funds in preparation for its initial public offering (IPO) in the third quarter of 2017.

Trần Ngọc Nguyên, Chief Executive Officer of BSR, said that the equitisation progress will allow investors to be early benefactors of the company’s plan to develop the national oil refining market.

BSR has submitted its net worth auditing process to authorities in order to publish the official results this month. The company has also finished its equitisation strategy and submitted it to the Vietnam Oil and Gas Group for approval, while actively looking for share buyers and strategic investors.

The company’s equitisation progress aims to pave the way for future strategic investment plans in the oil refining and deep processing fields.

BSR’s aim for increased oil production and a more diverse range of products requires investors with financial strength, experienced human resources and a deep understanding of oil refining technology.

Phạm Đình Thưởng, deputy head of the Department of Legislation of the Ministry of Industry and Trade, said at a recent BSR’s conference that the company needs major reconstruction to prepare for a successful IPO, such as a clear set of rights and responsibilities for the shareholders.

At the end of 2016, Nguyễn Hoài Giang, BSR’s Chairman, told the press that the company must diversify its shareholders. As such, BSR is looking for investors amongst potential foreign oil companies as well as domestic commercial banks.

Since 2010, many potential investors from Japan, Venezuela, Russia and the Republic of Korea have expressed their interest in BSR’s shares. The company’s current return on equity is about 17 per cent.

Starting January 1, 2017, BSR has been authorised by the Prime Minister to operate individually via Decision 1725/QĐ-TTg. This means the company now competes fairly with imported products with regular market pricing without government subsidies. — VNS

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