Tuesday, November 21 2017

VietNamNews

BSR to earn $88m via IPO

Update: October, 17/2017 - 16:45
Dung Quất Oil Refinery operated by Bình Sơn Refining and Petrochemical Company Limited. – VNA/VNS Photo Huy Hùng
Viet Nam News

HÀ NỘI — Bình Sơn Refining and Petrochemical Company Limited (BSR) plans to sell some five to six per cent stake to domestic and foreign investors, collecting estimated revenue of nearly VNĐ2 trillion (US$88 million) through its initial public offering (IPO) in November 2017.

The information was revealed by Trần Ngọc Nguyên, the BSR’s general director, on stockbiz.vn.

He expected all the shares would be sold during the upcoming IPO because the production situation, revenue and profit of the company were positive from the investors’ view.

The starting price will be based on the market situation, with the participation of reputable domestic and international companies. "We will announce the starting price close to the IPO date and update the latest business results," Nguyên added.

In the next 12 months, the company targets to sell 49 per cent stake to strategic investors, estimated at $1 billion and bring the State’s ownership to less than 50 per cent.

BSR is a wholly-owned subsidiary of Việt Nam National Oil and Gas Group (PetroVietnam) and operator of the $3 billion Dung Quất Oil Refinery, the first oil refinery in the country.

Trần Đình Thiên, director of the Việt Nam Institute Economics, said the strength of Dung Quất Oil Refinery is to create petrol, an essential product for domestic and business purposes. With processing capacity of over 6.5 million tonnes of crude oil per year and meeting over 30 per cent of the domestic demand, BSR has stable cash flow. It is the significant factor for large investors to consider investing capital.

However, BSR should build a strict, transparent and effective corporate governance system to develop sustainably and create trust for investors, Thiên suggested.

According to BSR’s business result for the first nine months of 2017, the company earned revenue of more than VNĐ55 trillion, exceeding 125 per cent of the target plan, and after-tax profit of nearly VNĐ5.5 trillion, contributing over VNĐ6.5 trillion to the State budget.

Besides this, the firm’s return on equity was 16.09 per cent, a year-on-year increase of 12.43 per cent. — VNS

 

 

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