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PVFC launch IPO; investors see potential
PetroVietnam Finance Corporation (PVFC) on October 19 launched its initial public offering (IPO) of 59.6 million shares on Ha Noi Securities Trading Centre.
More than 8,000 investors, including 121 institutional buyers, ordered a total amount of 140.5 million shares, which represents an oversubscription of more than double for the offering.
Due to the scale of investor interest, PVFC’s auction is expected to last two days.
By 19:30 on October 19, about three fourths of the bidding tickets had been processed with 170,000 VND (10.6 USD) as the highest bid price compared to a starting value of 51,000, the HASTC said in its website.
A senior official at PVFC’s Planning Department who asked not to be named, said: “The company carried out this IPO to be in line with equitisation schedule of its parent groups, PetroVietnam. Through this auction, we also want to know how attractive we are in the market. As a result, we will be better prepared for listing in a couple of years.”
He predicted that the share price would reach around 70,000 VND. “That is a reasonable price for most investors. Of course, at a higher price, we would earn more, but at this price, we can attract long-term investors. That is what we need.”
Many analysts agreed. Dao Van Khanh, an Agribank Securities’ expert, said: “This IPO came at an advantageous period. However, investors have showed their professionalism in the first day of auction by placing orders at an affordable price. I think the share price will fix at between 70,000 VND to 75,000 VND. [The IPO] seems successful considering it was this corporation’s first auction.”
Furthermore, following PVFC’s debut, there are a number of large IPOs to come, especially that by Vietcombank. As a result, investors will not pour as much money into this IPO as otherwise they night have, he said.
After equitisation, the corporation is aiming for average annual growth of 36.1 percent in 2007-11 period. The dividend payment will stand at 7.02 percent this year, rising to 10.02 percent in 2011.
“With this promising data, investors can be sure to make a stable profit in the future,” Khanh said.
VNA
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