PV Gas ready to roll

PetroVietnam Gas (PV Gas) will sell 95 million shares in its initial public offering (IPO), representing 5 per cent of the total chartered capital of more than VND18.9 trillion ($970 million), with an estimated price of VND31,000 ($1.6) per share, on November 17.

Photo - pvgas.com.vn

Le Minh Hong, PV Gas board chairman, said: “After the IPO, another public offering will be made to sell another 5 per cent of the total chartered capital. Shares representing another 15 per cent will be offered to strategic investors and the firm’s employees.”

After the offerings, the state’s stake will drop to 75 per cent.

PV Gas’s IPO will be the biggest IPO ever made in Vietnam with 27 securities companies registering as auctioning agencies through 82 transaction spots nationwide, according to the company’s statement.

“There will be 14 multinational oil and gas companies and financial institutions taking part in the coming auction to become the firm’s strategic investors,” said Hong.

To Hai, director of Viet Capital Securities Joint Stock Company, PV Gas’ consultant in share listing, said: “PV Gas plans to list its shares on the Ho Chi Minh Stock Exchange on February 14, 2011. We will ensure that the shares will be listed on time.”

Established in 1990 from the restructuring of Vung Tau Oil and Gas Project Management Board, PV Gas is now operating in gathering, transporting, storing and trading gas and gas-based products. Shortly after its inception, PV Gas quickly built a system to gather and use gas from the Bach Ho oil field, the local gas industry’s first infrastructure system.

Each year, the firm provides nearly 8 billion cubic meters of gas, more than 600,000 tonnes of liquefied petroleum gas (LPG) and nearly 100,000 tonnes of condensate (light gasoline), ensuring the production of nearly 40 per cent of electricity, 30 per cent of fertilisers, 5 per cent of gasoline products and 70 per cent of LPG in the country.

During 2006-2010, the firm’s revenue increases were secured at some 18 per cent, per year. PV Gas reported earnings of VND30 trillion ($1.6 billion) in 2009 and posted a net profit of $113.9 million. It had estimated revenues of VND36.9 trillion ($1.9 billion) in 2010 and a profit of $231.9 million.