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BSR IPO coming up next month
Binh Son Refining and Petrochemical Company Limited (BSR), which operates the $3-billion Dung Quat Oil Refinery, expects to acquire VND2 trillion from its initial public offering (IPO), which is expected to be conducted next month, according to newswire Vnexpress.
According to Tran Ngoc Nguyen, general director of BSR, the company will offer between 5-6 per cent of the stakes at its IPO to both domestic and foreign investors. BSR believes that its offered shares will be sold out at its IPO as it is garnering heavy attraction.
Nguyen stated that BSR will try to list on the stock exchange right after the IPO, despite it being difficult to realise due to the company’s large scale.
Furthermore, within 12 months of its IPO, BSR plans to complete the sale of a 49-per-cent stake to strategic investors, aiming to reduce the state-owned holding below 50 per cent.
BSR is an affiliate of Vietnamese oil and gas group PetroVietnam, which is directly in charge of the management and operation of Dung Quat Refinery—the country’s first oil refinery. The refinery was built to localise petrochemical products supply. It was inaugurated in 2011 with a total investment of $3.05 billion and is currently able to satisfy 30 per cent of thedomestic petroleum demand.
In 2015 and 2016, BSR’s after-tax profit reached VND6.707 trillion ($295.5 million) and VND4.492 trillion ($197.89 million), respectively. In addition, the return on equity (ROE) of the firm in these two years was 21 and 14 per cent.
According to the executives, in the first eight months of 2017, BSR recorded strong business results with an after-tax profit of VND4.002 trillion ($176.3 million), close to that of the whole year of 2016.
The IPO of BSR is considered one of the three “blockbusters” on the stock market in the last quarter of the year, along with two other oil and gas companies, namely PetroVietnam Oil Corporation (PV Oil) and PetroVietnam Power Corporation (PV Power).
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