Vietnam: Binh Son Refinery feels opportune time for IPO

Vietnam: Binh Son Refinery feels opportune time for IPO

Vietnam's first oil refinery, Binh Son Refinery and Petrochemical Co., Ltd.,
is being eyed by foreign investors. As of late 2015, the company determined
its own value at about $3.2 billion, setting firm groundwork for it to
conduct an initial public offering and find strategic investors.

This information has been released by the Ministry of Industry and Trade.

It is said that the corporate valuation will lay the foundations for
calculating the share price of Binh Son Refinery and Petrochemical Co., Ltd.
(BSR) and represents an important step in its equitisation scheme.

To date, BSR is the largest company in terms of capital to be equitised,
according to BSR.

BSR is planning an initial public offering (IPO) in the fourth quarter of
this year, putting 5-6 per cent of its equity up for grabs and will continue
to seek strategic investors for the remaining stakes.

In response to VIR's queries about the modest portion of equity involved in
the firm's IPO, BSR CEO Tran Ngoc Nguyen said that the company had carefully
considered the volume of shares to offer and heeded recommendations from its
consultancy firm.

The IPO will be divided into two periods. During the first period, BSR will
be transformed into a joint stock company, offering shares to its staff and
holding an IPO, which is set to be completed in 2017.

The firm will try to complete equity sales to strategic investors within the
next 12 months.

Nguyen expected BSR to sell up to 36 per cent of its stakes to strategic
investors who have strong financial resources and experience in the refinery
sector.

It is said that BSR held discussions with Japan's JX Nippon Oil & Energy
Corp., South Korea's SK Energy Co., Russia's Gazprom Neft, and others on
potential strategic stake sales, but so far, no final decision has been
made.

Vietnam is trying to meet its state company equitisation target and has
shifted to increase the quality by pushing the IPOs of large corporations.

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Link to Original Article:
http://www.vir.com.vn/binh-son-refinery-feels-opportune-time-for-ipo.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com