09:57 | 19/01/2018 Energy
Binh Son Refining and Petrochemical One Member Co Ltd (BSR), a subsidiary of PetroVietnam, sold 7.79 percent of its charter capital, equivalent to 241.5 million shares during its first initial public offering (IPO) on January 17.
|Illustrative image - Source: VNA|
The shares were sold to 623 investors, including 62 organizations and 561 individuals, at an average price of 23,043 VND (US$1.01) per share, as against the asking price of 14,600 VND (US$0.64). Of note, a foreign investor purchased 147.83 million shares or 61.2 percent of the total shares on sales.
Under the equitisation plan, PetroVietnam will retain 43 percent of BSR’s charter capital, while a maximum of 49 percent (1.52 billion shares) will be sold to strategic investors, expecting to earn nearly US$1 billion. About 0.21 percent of shares will be offered to the company’s employees.
Nguyen Hoai Giang, Chairman of the BSR Council of Members, said that the company is selecting strategic investors, prioritising those who are operating in petrochemical, oil and gas, and have minimum charter capital of 10 trillion VND. They are also required to make profits in the last two years with no aggregated loss. They should commit to maintaining the main business and not to transferring purchased shares.
BSR will carefully discuss concrete cooperation strategies with its partners, he added.
BSR is the operator of Dung Quat Refinery, which has an annual capacity of 6.5 million tonnes of crude oil, supplying 30 percent of the country’s petrol needs. The refinery is expected to increase capacity to 8.5 million tonnes in 2021.
In 2018, BSR’s net revenue is estimated at more than 102.2 trillion VND, and its post-tax profit at over 8.3 trillion VND, which is hoped to increase to over 8.7 trillion VND in 2021.
BSR is the largest enterprise to be equitised ever, with a value of some US$3.2 billion .
In 2017, BSR contributed 16 percent of PetroVietnam's total revenue and 33 percent of the group's total profit.