Vietnam: SATRA to tap IPO in 2017; Petrolimex plans listing

Visual from Petrolimex website.

2017 appears to the year for state divestments and public issues in Vietnam. Among those stake sales, Saigon Trading Group, also known as SATRA, is said to go for an IPO in the second quarter, and petroleum trading major Petrolimex is contemplating a public listing in April.

Saigon Trading Group to sell first shares in Q2

Ho Chi Minh City-based Saigon Trading Group, the conglomerate with operations in retail, real estate and food processing, is said to implement its initial public offering (IPO) by the end of the second quarter this year.

The announcement of the company’s valuation is expected to be made within this month, the group added. Similar to many other state-owned enterprises who have delayed their privatisation, the IPO of SATRA was supposed to be by the end of 2016.

As earlier scheduled, the state ownership at SATRA will be trimmed to at least 65 per cent post the IPO and down further to below 50 per cent after 2019. However, the company did not disclose in details on stake sale during the IPO.

SATRA reported consolidated revenues of $2.5 billion in 2016, representing a year-on-year increase of 12.3 per cent, according to local media. The group’s profit last year was said to jump 26.2 per cent to reach nearly half a billion US dollars.

Founded in 1995, SATRA has offices in Japan, Myanmar and Cambodia.

In Vietnam, it is joint venture partner with Heineken in the 40:60 beer making joint venture Vietnam Brewery Limited.

Petrolimex files to list on Ho Chi Minh City bourse at $2.3b valuation

Vietnam National Petroleum Group (Petrolimex), the biggest importer and distributor of oil products in the country, has submitted documents to list 1.29 billion shares on the Ho Chi Minh City Stock Exchange, the southern bourse has announced.

The listing is expected to take place in mid-April, while the debut price is not disclosed, according to a statement by the company. However, Petrolimex said its OTC market value is VND41,000 per share, and the company’s market capitalisation will reach over $2 billion upon the public listing. This valuation ranks Petrolimex among the 10 largest stocks on the Ho Chi Minh City Stock Exchange.

Already occupying a 50 per cent market share, Petrolimex hoped to gain a turnover of $10 billion in 2020 and to pay an annual dividend rate at 12 per cent, the firm said during its meeting with institutional investors on March 3.

It was also revealed at this event that Petrolimex will plan an overseas listing in the future.

State ownership in the firm will be reduced to less than 75 per cent, after having sold a strategic stake of 8 per cent to Japan’s JX Nippon Oil and Energy in 2016. The state is still holding 75.87 per cent of Petrolimex, while the Japanese strategic investor is not allowed to sell its shares within five years.

The company scored almost a 50 per cent year-on-year rise in profit to hit $276 million in 2016. It expects this year’s profit to expand by another 10 per cent.

Also read:

Japan’s JX Nippon Oil eyes 10% in Vietnam’s Petrolimex for $177m

Vietnam state coffee firm Vinacafe plans 35% stake sale via IPO

Vietnam’s PV Oil in talks to sell 40% stake as state opens market