Binh Son Refinery reports successful IPO

January 18, 2018 | 22:31

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Binh Son Refining and Petrochemical Co., Ltd. (BSR) reported a successful initial public offering (IPO) with a complete take-up of the offered shares and the record selling price of VND14.8 million ($651.69) apiece, according to information published on the Ho Chi Minh City Stock Exchange.

BSR's IPO was a record-breaking success (Source: Laodong Newspaper)

On January 17, BSR conducted its IPO to sell 242 million shares, equalling 7.79 per cent of its charter capital at the initial price of VND14,600 ($0.64) apiece. As a result, 623 investors among the 4,079 registered investors won the auction, including 62 organisations and 561 individuals. 147.83 million shares, equalling 61.2 per cent of the offered share volume, were bought by foreign investors.

The average selling price was VND23,043 ($1.01), 57.8 per cent higher than the initial price. The lowest selling price was VND20,800 ($0.92). Of particular note, an individual investor succeeded in buying 10,000 shares at the record price of VND14.8 million ($651.69) apiece.

After the IPO, BSR earned VND5.57 trillion ($245.26 million) in proceeds, 1.5 times higher than its expectations.

BSR’s IPO reported a record in the number of investors registering to join the auction with over 4,000 investors, as well as in the registered shares as over 651.78 million shares were registered to be bought, 2.7 times higher than the offered volume.

After the IPO, PetroVietnam will retain 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 the company’s employees.

In the 11 months of 2017, BSR produced 5.57 million tonnes of petroleum, meeting 30 per cent of the domestic demand.

Dung Quat Refinery’s operator reported total revenue of VND71.9 trillion ($3.15 billion) in the first 11 months of 2017, up 15.8 per cent over the annual plan. It contributed VND9.06 trillion to the state budget, 26.3 per cent higher than planned for the entire year.

BSR's profit was expected to top VND8 trillion ($351 million) by the end of 2017, with a return on equity (ROE) ratio reaching 25-26 per cent.

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