The equitization plan of BSR, PVOil and PV Power approved

Dung Quat Oil Refinery plant’s shares will be priced at VND14,600 (US$0.64) each in its initial public offering (IPO)

BSR, which is responsible for receiving, managing and operating Dung Quat Oil Refinery plant, has the charter capital of over VND31 trillion (US$1.36 billion).

BSR’s charter capital does not include capital needed to upgrade and expand Dung Quat Oil Refinery plant after BSR was valued.

The amount, which was added to BSR’s charter capital to upgrade and expand Dung Quat Refinery plant by PetroVietnam after BSR was valued, will be refunded to PetroVietnam for accounting and management as regulated. 

Previously, on December 31, 2015, BSR was valued at VND72,879 billion (approximately US$3.2 billion) of which PetroVietnam accounted for VND44,934 billion (roughly US$1.98 billion). 

Under the equitization plan, PVN will hold a 43 per cent stake in BSR. 

BSR will put nearly 242 million shares, equalling 7.79 per cent stake, on sale in its initial public offering (IPO) via a public auction with the initial price of VND14,600 ($0.64). Besides, BSR will sell 6.5 million shares, or 0.21 per cent stake, to its employees.

Strategic investors are allowed to purchase maximum of 49 per cent of BSR's chartered capital.

According to regulations, strategic investors must have equity of at least VND10 trillion (US$440.4 million) and have been operating in profit in the latest two years, excluding accumulated loss. They aslo have to commit not to transfer shares within five years.

PetroVietnam must hold a 51 per cent stake in PV Power as committed to lenders

According to the Decision approving the equitization plan, PV Power's charter capital is VND23,418 billion (US$1.03 billion), of which PetroVietnam amounts to 51 per cent. 

PV Power will sell over 2.7 million shares, or nearly 0.19 per cent stake, to its employees and 468 million shares, equaling 20 per cent stake via a public auction with the initial price of VND14,400 ($0.63). At this price, PV Power’s market capitalization is about US$1.48 billion, lower than the amount of US$2.6 billion valued by the Ministry of Industry and Trade. 

Strategic investors can purchase 676 million shares, equaling nearly 29 per cent of charter capital. 

According to regulations, strategic investors have been operating in profit in the latest two years, excluding accumulated loss and have to commit not to transfer shares within five years.

Strategic investors must commit to holding PVOil's shares for 10 years

PVOil's charter capital was estimated at VND10,342 billion (US$456 million) of which PVN accounts to 35.1 per cent. 

PVOil will put nearly 207 million shares, equaling 20 per cent stake, on sale via a public auction with the initial price of VND13,400 ($0.59) on Ho Chi Minh Stock Exchange (HOSE) in March 218. Besides, BSR will sell 1.8 million shares, or 0.18 per cent stake, to its employees.

Strategic investors can purchase 44.72 per cent of PVOil's chartered capital or over 462 million shares. 

Strategic investors must have strong financial potential with equity of at least VND2 trillion (US$88.2 million) and have been operating in profit in the latest two years, excluding accumulated loss. They also have to commit not to transfer shares within 10 years.