The wave of equitization of large state-owned enterprises has pushed the value of IPOs on Vietnam's stock market to a record in the first quarter of this year.
According to data of StoxPlus Company, in the first quarter of 2018, the value of initial public offering (IPO) auctions on Vietnam's stock market set a record at $935 million, equal to the total IPOs of the previous four years.
This is the result of stock auctions of many large state-owned companies in recent times, especially in the field of energy.
In details, Petro Vietnam Power Corporation (PV Power) mobilized roughly $307 million after auctioning 20 per cent of its stake on January 31 of which foreign investors bought 12 per cent. VinaCapital's investment funds invested $20 million in this auction.
PV Power, the second largest electricity producer in Vietnam after EVN, plans to sell 29 per cent stake to strategic shareholders and Korea's Teakwang Group which is a potential partner.
Binh Son Refining and Petrochemical Company Limited, the operator of Dung Quat oil refinery, sold nearly eight per cent of its shares with total value at $244 million. Roughly 60 per cent of Binh Son shares were bought by foreign investors including VinaCapital. Many foreign oil companies are interested in buying 49 per cent of Dung Quat oil refinery's stake.
PetroVietnam Oil Corporation (PVOil) also collected $184 million after auctioning 20 per cent of stake in HOSE of which foreign investors bought about 30 per cent.
PVOil is the only company that has been marketing and selling crude oil in Vietnam for more than 31 years. It is also the second largest petroleum distributor after Petrolimex with 22 per cent market share.
In the first quarter of 2018, there were a lot of other billions of VND - auctions conducted by Vietnam Urban and Industrial Zone Development Investment Corporation (IDICO), Vietnam Rubber Group (VRG), VinaFood 2 and Hapro.
In 2018, more than 80 enterprises including large scale ones are expected to be equitized.
Investors are waiting for IPOs of large companies in the trade and services sector such as Mobifone, BenThanh Group, Satra, Saigon Tourist or in real estate and construction such as Investment Corporation and Hanoi Housing Development Corporation (Hadico) or Resco.
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