Wednesday, September 26, 2007

Petrovietnam Finance Company plans $188 mln IPO

The finance arm of state-owned Petrovietnam oil group plans to raise more than $188 million through a sale of shares to the public next month, part of its plans to fund investment in the energy sector.

Petrovietnam Finance Company will sell 11.93 percent of its shares at an initial public offering on Oct. 19, the over-the-counter Hanoi stock exchange said in a statement on Tuesday.


Crude oil is the largest export earner for Vietnam, Southeast Asia's third-largest exporter of the fuel. The country sees investment of $20 billion in the oil and gas industry by 2015 and another $21 billion by 2025.

Petrovietnam plans to contribute at least 30 percent in its oil and gas projects, with foreign investment covering the remainder, which requires its financial arm to seek huge funding from domestic and foreign markets.

PVFC would be valued at $1.58 billion based on the starting price it set for bidding at 51,000 dong .

PVFC, which has been licensed to raise deposits and provide loans as well as several other financial services, is among Vietnam's few corporate bond issuers.

It has said it would focus on raising funds, investing in various projects as well as offering financial services. By 2010 financial investment and the provision of financial services would each contribute 30 percent to its profit.

Crude oil is the largest export earner for Vietnam, Southeast Asia's third-largest exporter of the fuel. The country sees investment of $20 billion in the oil and gas industry by 2015 and another $21 billion by 2025.

PVFC's registered capital has risen to 5 trillion dong ($309 million), from 300 billion dong in December 2004.

The company has projected revenues this year to rise 27 percent from 2006 to 1.3 trillion dong ($80 million).

PVFC did not provide a net profit figure but said its total assets at the end of June nearly doubled the value at the end of 2006 to 35 trillion dong ($2.2 billion).