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Binh Son Refinery delays its IPO until Jan 2018

The initial public offering (IPO) of Vietnam's Binh Son Refining and Petrochemical (BSR), scheduled on November 07, will be delayed until January 2018 due to the lack of strategic partners.

BSR is a member of the Vietnam National Oil and Gas Group (PVN), whose chartered capital is VND35 trillion (roughly US$1.54 billion), but its equity is currently only about VND34 trillion (roughly US$1.5 billion) due to its early losses since 2010.

BSR - a state-owned company, which has repeatedly delayed its IPO, planned to sell more than 4 per cent of shares to the public and expected to earn US$80 million in the mid-year.

At the same time, the company expected to sell 49 per cent of its stake to strategic investors. However, the equitization plan has recently changed, and the company may sell more shares in the public offering.

Last week, BSR's CEO Tran Ngoc Nguyen said that two foreign corporations doing business in the oil refining sector are seeking to buy BSR shares, including World Petro and MacronPetro Petroleum.

A response letter from John Webster, President of Macron Petro Petroleum sent to BSR, said the company would join the race with a desired 10-40 per cent stake in BSR.

World Petro, the international oil company operating in the United Kingdom, the United States, South America and Singapore, expects to own 49 per cent stake in the company.

Another state-owned company so-called Petrolimex also expresses its intention to buy shares of Dung Quat oil refinery after the two parties signed the cooperation agreement. This group accounts for more than 40% of the 21 units consuming petroleum products of the plant.

"We are still considering, not yet select any strategic partner," Nguyen said.

Recent improvements in Dung Quat's performance are posing positive factors to the largest refinery's IPO in Vietnam. The plant has undergone maintenance for the third time in July 2017.

In the first six months of this year, BSR reached revenue of VND38,652 billion (roughly US$1.7 billion), up 15 per cent yoy. The company achieved a net profit of VND3,832 billion (roughly US$168 million), a fourfold increase in the first half of 2016.

Source: The LEADER