07:45 (GMT +7) - Monday 21/10/2019

Business

BSR to debut on UPCoM on March 1

Released at: 20:53, 26/02/2018

BSR to debut on UPCoM on March 1

The Binh Son Refining and Petrochemical complex (Photo from bsr.com.vn)

Reference price at VND22,400 ($0.98) on Binh Son Refinery's debut.

by Quang Huy

The Binh Son Refining and Petrochemical Co. (BSR) will list 241.4 million shares on the Unlisted Public Company Market (UPCoM) on March 1, with a reference price of VND22,400 ($0.98), according to information published by the Hanoi Stock Exchange.

The government raised VND5.6 trillion ($245.2 million) from selling a 7.79 per cent stake in BSR at an initial public offering (IPO) on January 17.

Winning investors totaled 623, of which 62 were organizations and 561 were individuals. Foreign investors secured more than 147 million shares, or 4.77 per cent of the company.

Registrations were made for nearly 652 million shares - 2.7 times higher than the offering - of which domestic investors sought 248 million and foreign investors more than 338 million.

Some 4,079 investors registered to purchase shares during the three weeks registrations were open, 3,957 of which were local individual investors, seven foreign individuals, 48 local organizations, and 67 foreign organizations.

After the IPO, the State-owned PetroVietnam retained 43 per cent of BSR’s charter capital, while a maximum of 49 per cent will be sold to strategic investors in the three months after the IPO. About 0.21 per cent of the shares will be offered to company employees.

BSR, the operator of Vietnam’s first oil refinery, Dung Quat in central Quang Ngai province, reported a net profit of VND8.66 trillion ($381.5 million) in 2017, an increase of an impressive 92.8 per cent against 2016. It produced 6.1 million tons of petroleum products during the year and posted revenue of VND82.03 trillion ($3.6 billion), up 11.4 per cent from a year earlier.

Other financial indicators also improved considerably. Return-on-equity (ROE) reached 25.57 per cent compared to 14.06 per cent in 2016, while return-on-assets (ROA) rose to 14.08 per cent from 7.49 per cent.

BSR is working on a plan to expand its processing capacity to 8.5 million tons of crude oil per year from the current 6.5 million tons. It now meets some 30 per cent of domestic demand.

Vietnam needs more refineries, as Dung Quat is capable of meeting just 30 per cent of domestic demand. The Nghi Son Oil Refinery in northern Thanh Hoa province, which is due to begin commercial operations this year, will bring total supply to 80 per cent of demand.

User comment (0)

Send comment