VietnamNewsToday.com

Vietnam’s PV Gas share sale drawing tepid investor interest

The response of local Vietnamese and international investors to this week’s stock offering by state-owned PetroVietnam subsidiary PV Gas is turning out to be less than enthusiastic, a senior consultant at a local securities company told Platts Tuesday.

Only about two-thirds of the 94.75 million common shares of PV Gas on offer — representing about 5% of the company — have been spoken for, according to the information on the HoChiMinh Stock Exchange website, meaning that there is unlikely to be any deviation from the published offer price of Vietnamese dong 31,000 ($1.57).

Investors have registered interest for 61.0 million shares in the public portion of the sale, with more than 90% of that interest coming from local investors or companies. Only about 7% of the interest comes from foreign investors, according to the exchange’s information.

“It does not mean that PV Gas’ shares are not attractive to the investment community. The fact that the local stock markets has kept going down recently is the main force that leads to the current dilemma,” said the consultant. It is unlikely that enough interest will arise before the end of Wednesday so that PV Gas can sell the remaining 35.7% portion of the public offering, she said.

Over the last year, the HCM Exchange’s main VN Index has fallen from around 550 points to near 426, losing nearly a quarter of its value.

PV Gas announced in October that it was selling 5% of the company in its stock offering that at the published price values the company at about $3 billion. At the same time, PV Gas also said it would be offering a 14.93% stake in the company to strategic investors, and another 0.7% to PV Gas employees and labor unions.

Local media reports in Vietnam have said the portion of the sale open to strategic investors has attracted the interest of bidders such as US oil company ConocoPhillips, India’s state-owned ONGC, Thailand’s PTT and the US-based Blackstone Group.

Chu Thi Trung, the deputy finance manager at PV Gas, however, declined to reveal the identities of any of the strategic investors that have shown interest. Previously, PV Gas had said that of 40 applications of interest for the strategic portion of the sale from international companies, 14 had been approved to compete as bidders.

Trung said that results of Wednesday’s IPO would be posted on the exchange website the next day, and that PV Gas shares would start trading on the HCM Exchange in February 2011.

The share sale is being managed by VietCapital Securities Company.

From VietNamBusiness

Newer Articles
  • Securities firms seek solutions to overcome difficulty
  • Income from securities could get tax waiver
  • Kinh Do to list on London exchange
  • April 28: Vietnam stocks closed mixed, broad market sentiment weak
  • April 26: VN index falls but 460 threshold sustains
  • Seize illegal profits, ban stock fraudsters: experts
  • Only 20-35pct of stock accounts see frequent transactions
  • Experts explore potential products for securities market
  • Ministry says securities rules to change for the better
  • Profit-taking depresses shares
Older Articles
  • Gold decision to set market pace
  • FPT to issue bonds, buy 50pct in EVN Telecom
  • Vietnam Food, Drinks Stocks May Beat Index Amid Inflation, ThangLong Says
  • Vietnam's stock market has come far in its first 10 years
Latest News
  • Vietnamese software firms consider Japan as the major market
  • Despite problems, 2011 FDI spending equals 2010
  • EVNTelecom asks for government’s approval to sell 12pct stake for VTC
  • Vietnamese enterprises expanding into international markets
  • Ernst & Young Vietnam role to be examined
  • Vietnamese firms invest over $24.5b in foreign countries as of July-end
  • Vietnam Insurance Market: Keeping Double-digit Growth
  • Vietnam’s economy looks grim with ADB’s forecast
  • Ministry rejects import-export tax changes
  • Government okays anti-dumping suit against US
For Foreigners
  • Adb: policy tightening will lower inflation
  • HSBC, Barclays to advise Vietinbank’s planned overseas dollar bond sale
  • Vietnam govt to service debt for troubled cement projects
  • Calm heads prevail as the forex market to remain cool
  • Further fiscal & monetary tightening in coming months
  • IMF cuts Vietnam’s inflation forecast to 9.5pct in 2011
  • Vietnam’s dong has best week since 1997 after dollar rates curb
  • Vietnam tightens control over state-bank partnership
  • Foreign investors list problems in Vietnam
  • Foreign invested enterprises complain about customs procedures

BusinessTradeVietnamGovernmentFDIWorld economyVietnamese PartyEconomyEconomicMarketState managementPrime MinisterHCM cityHanoiHo Chi MinhCPIAsianWorldAmericaEuropeNguyen Tan DungHau GiangMekong DeltariceStandingMekongCambodiausajapanchinakoreaLai ChauHoa BinhHoi AnChu LaiQuang NamDa nangCan thoSon LaPower PlantMinistry of IndustryDung QuatOilSingaporeThailandMalaysiaIndonesiaLaosVietnameseFDI capitalinvestorsforeign investorNetherlandsUSservicetransportationinfrastructuretourismVNPostExpressSpainGoldTra fishexportcontractstouristMiddle AreaConstructionShipbuildingIndustryCompanyIndustrial ZonebudgetDong NaiBinh DuongVung TauTay NinhBinh PhuocTay NinhLong AnTien GiangUS investorshydropower plantQuang NinhNha TrangStock ExchangeHNXIndexcapitalAgricultureDong ThapAn GiangExport-Processing ZoneYen BaiLao CaiLai ChauDien BienSon LaHoa BinhPhu ThoHa GiangTuyen QuangBac KanLang SonCao BangmanufacturersAseanRussiadevelopmentAviationinflationHong KongAmericanChamber of CommerceSeafoodODAWBIMFFEDAsia-PacificAssociationcountriesEuropeanmarine economyThanh HoaNghe AnNam DinhHa TinhPhu LýVinh PhucBac NinhBac GiangHung YenHai DuongBinh ThuanBinh PhuocLam DongGia LaiKon tumQuang NgaiQuang BinhQuang TriNinh ThuanCa MauBac LieuSoc TrangTra VinhKien GiangVinh LongBen TreincomespoliciesLawassetsNatural GasBuildingstatisticsstrategyDa Latmineral exploitationprocessingindustrieselectricitywatersupplyEnterprisesforestryfisherycommunicationsreal estatetransportationCorruptionbauxiteSecuritiesInsuranceBankFinanceAccountgoodsTrade BalancecoffeeCoalfestivalHa NamNinh BinhHoa BinhUniversityArtsBooktravelVietnam VisaVisaPagodaCommitteePeople's CommitteeVinashincompaniesHoa PhatHSBCACBvietcombankvietinbank

Copyright 2010 © VietnamNewsToday.com 
Powered by: CIINS Design by: Webdesign.vn