Biggest VN brewer gets approval to go public

September 30, 2016 | 18:57
(0) user say
The Ministry of Industry and Trade (MoIT) has approved the HCM Stock Exchange ((HOSE) listing of Sai Gon Alcohol, Beer and Beverages Corporation (Sabeco). Viet Nam's largest brewer plans to start its stock exchange operation in November.
Empolyees of the Sai Gon Alcohol, Beer and Beverages Corporation (Sabeco) operate a beer production line. The State now holds 90 per cent of the charter capital in Sabeco.-VNA/VNS Photo Manh Linh

Earlier this month, the Government reported on the Prime Minister's decision to withdraw State capital from Sabeco and Ha Noi Beer Alcohol and Beverages Corporation (Habeco). The Government asked representatives of the State's capital at the two companies to list the companies' shares at the earliest.

The State now holds 90 per cent of the chartered capital in Sabeco, and its divestment will be conducted in two phases.

Nearly 53.4 per cent of the State's ownership in Sabeco, equal to VND24 trillion (US$1.1 billion) will be sold by the end of this year, and the remaining of 35.6 per cent or VND16 trillion will be transferred next year.

Sources familiar with the deal told local media that Sabeco was close to signing a contract with Maybank KimEng Securities Co Ltd, a consulting firm with a good reputation and experience in the securities industry, about carrying out the share listing.

The State also plans to sell its 82 per cent stake of the Habeco by the end of this year, the Ministry of Industry and Trade said in its statement.

The State's share of the chartered capital equals VND9 trillion, after selling nearly 16 per cent to the Danish brewer Carlsberg and nearly 1.9 per cent to the employees when the company was equitised in 2008.

The northern brewer is now looking for a financial institution that can help with procedures and documents on the stock listing.

Brewer shares soar

The news of Sabeco's listing sent the share prices of beer producers on Viet Nam's securities market up in recent trading days.

The offer price for Sabeco shares on the OTC market has been over VND110,000 per unit since September 20, when the Ministry of Industry and Trade officially responded to Sabeco's listing proposal, up from VND80,000-90,000 per unit.

The capitalisation value of Sabeco shares on the OTC reached VND71 trillion, including VND63 trillion owned by the State.

Meanwhile, the price of Habeco on the OTC market has moved a little higher to VND47,000-48,000 per unit.

Other listed brewers are Sai Gon-Phu Tho Beer JSC (BSP), Sai Gon-Mien Trung Beer JSC (SMB) and Sai Gon Beer Western JSC (WSB) on the Unlisted Company Market (UPCoM), and Chuong Duong Beverages JSC (SCD) on HOSE.

BSP's value has nearly doubled since being listed on the UPCoM in early August to end yesterday at VND29,700. SMB and WSB have gained a quarter and a third each during the same time to close yesterday at VND30,100 and VND49,500, and SCD has surged 52 per cent to finish at VND37,300.


What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional