PetroVietnam Gas plans September IPO

Workers check equipment to supply LPG at Dinh Co Gas Processing Plant. PetroVietnam Gas plans to sell shares in the IPO representing 10 per cent of its equity of over VND18.9 trillion (US$1 billion). — VNA/VNS Photo Ha Thai

HA NOI — PetroVietnam Gas Corporation, one of the three leading affiliates of State-owned oil giant PetroVietnam, will make its initial public offering on the HCM City Stock Exchange next month, the company has announced.

PetroVietnam Gas (PV Gas) plans to sell shares in the IPO representing 10 per cent of its equity of over VND18.9 trillion (US$1 billion).

Shares representing another 15-per-cent interest will be offered directly to strategic investors. PetroVietnam is investigating potential strategic investors and will submit them to the Government for approval.

As the leader in the gas industry, PV Gas has played an important role in ensuring national energy security and promised strong growing potential, said Huynh Richard Le Minh, deputy director of Viet Capital Securities Co, the firm consulting on the IPO.

PV Gas supplies fuel to produce 40 per cent of the nation's electrical output and 30 per cent of its fertiliser, and meets over 70 per cent of liquefied petroleum gas (LPG) demand nationwide.

PV Gas has targeted an annual revenue growth of 18-20 per cent for the period of 2011-15. By 2015, the company was expected to reach VND68.6 trillion ($3.6 billion) in earnings and nearly VND5.3 trillion ($279 million) in net profit, said PV Gas deputy director Bui Minh Tien.

PV Gas would invest VND72.6 trillion ($3.8 billion) in developing infrastructure and expanding its gas distribution market during the period, he added, noting that the the company had business ties with prestigious foreign partners including BP, the US's ConocoPhillips and Chevron, Japan's Mitsui and Thailand's Pttep.

PV Gas reported earnings of VND30 trillion ($1.6 billion) last year and posted a net profit of VND3 trillion ($158 million). It has estimated revenues of VND40 trillion ($2.1 billion) this year and a profit of VND4 trillion ($210.5 million).

The date and reference price for the IPO have not yet been set, PV Gas said.

If the price is set at VND30,000 ($1.58) per share – equivalent to its subsidiary's share price on the Ha Noi bourse – and all shares are sold, the IPO will absord investment of around VND5.7 trillion ($300 million).

There are 20 shares under the auspices of PetroVietnam currently listed on the nation's two stock exchanges, three of which are subsidiaries of PV Gas, including PetroVietnam Low Pressure Gas Distribution (PV Gas D), PetroVietnam Southern Gas (PV Gas South) and PetroVietnam Northern Gas (PV Gas North).

Last year, nine PetroVietnam subsidiaries raised VND5.8 trillion ($305.3 million) on the Ha Noi bourse. Shares in the PetroVietnam group are usually favoured by investors due to their positive corporate earnings, their important roles in the national economy and long-term development prospects. — VNS 

Updated August, 07 2010 10:27:37

by http://vietnamnews.vnagency.com.vn