Making news

Vietnam gears up for divestment from large SOEs

The government has geared up for the divestment of State-owned capital from many large State-owned enterprises (SOEs) this year, according to the Ministry of Finance.

In the first quarter of 2018, the State will sell its stakes in three SOEs owned by the Vietnam National Oil and Gas Group (PetroVietnam), including Binh Son Refining and Petrochemical Co., Ltd (BSR), PetroVietnam Power Corporation (PV Power) and PetroVietnam Oil Corporation (PV Oil), for about 100 trillion VND (4.4 billion USD) in total.

Binh Son Refining and Petrochemical Company Limited (BSR) plans to float 242 million shares, 7.79 percent of its chartered capital, in an IPO scheduled for January 17 on the Ho Chi Minh Stock Exchange (HOSE). The shares will be sold at the initial price of 14,600 VND.

PV Power will put more than 468.3 million shares for sale in its IPO on January 31, 2018 on the Hanoi Stock Exchange (HNX) at the price of 14,400 VND per share.

Meanwhile, PV Oil will offer nearly 207 million shares or a fifth of its charter capital for sale on January 25 on the HOSE at a starting price of 13,400 VND.

Big names in the divestment plan also include Vietnam Rubber Group which has a charter capital of 50 trillion VND (2.2 billion USD), Hanoi Beer-Alcohol and Beverage Corporation (HABECO), and Vietnam’s largest dairy company Vinamilk.

The rubber group will auction 475 million shares, 11.88 percent of its total capital to the public in its initial public offering (IPO) next year, at an initial price of 13,000 VND. The group missed the first deadline for its IPO, which was scheduled for July 2017.

The divestment list includes three SOEs under the Ministry of Industry and Trade, one under the Ministry of Transport, two under the Ministry of Labour, Invalids and Social Affairs, two under the Ministry of Environment and Natural Resources, one under the Ministry of Culture, Sports and Tourism, one under the Ministry of Health, and eight under the Ministry of Construction.

The remaining firms on the list are managed by the State Capital Investment Corporation (SCIC) and administrations of cities and provinces across the country.