Some economists have said Vietnam once missed the opportunity in2006-2007 to push up the State-owned enterprises (SOEs) equitisation anddevelop its finance market. Will it be able to grab the new comingopportunity, asked an analysis published on February 20 on theEnglish-language online newspaper VietNamNet Bridge.
BlackstoneGroup, the big US investment bank and asset management group, nevershowed its interests in the Vietnamese market before. But its name wasrecently found on the list of the partners willing to becomeshareholders of GAS, a Vietnamese gas company listing on the Ho Chi MinhCity bourse.
In mid-January, GAS once again asked the Governmentto allow it to continue the equitisation. It proposed that the Stateeither sell part of the stakes it holds, or allow GAS to issue moreshares to increase its chartered capital. The shares to be issued wouldmostly target foreign strategic shareholders.
Under its plan,the money to be collected from the share issue would be used to buy theBlock B O Mon gas mine in the west of the southern region, which isbelieved to have a reserve big enough to ensure the input materials forfive power plants. The purchase would be made by GAS, PetroVietnam andits subsidiaries.
The story of GAS
Sources said that theGovernment has agreed in principle to allow PetroVietnam and GAS, asubsidiary, to buy Block B O Mon project with its own money.
GASnow needs a huge sum of money, nearly 1 billion USD, to buy the gaspipeline, 400 kilometres long, from the US Chevron group. And GAS needsto continue its equitisation process to get money to implement the plan.This is believed to be the most feasible solution.
GAS once madean initial public offering (IPO) in 2010, when it successfully issued62 million shares, or 3.28 percent of the State’s stakes. It has beenthe company with the biggest capitalisation value in the stock market,thus having big influences to the VN Index. About 2.5 percent of GAS’stakes is being held by foreigners, while the amount of shares availablefor transactions is limited, just 0.78 percent.
Vietnam should not miss the second opportunity
In2006-2007, before and after Vietnam officially joined the World TradeOrganization (WTO), it once had the golden opportunity to accelerate theequitisation and develop the finance market.
At that time,international experts said that billions of dollars worth of foreignportfolio investment was waiting to be disbursed for Vietnamesebusinesses’ IPOs. However, the opportunity was missed out.
And the second opportunity has come, even though it is smaller.
TheGovernment has urged big SOEs to restart the equitisation process,which got stagnant recently because of the gloomy stock market.
Lastmonth, the Ministry of Transport stated it planned to equitise the ACV,which manages tens of airports nationwide, including the two biggestinternational airports of Tan Son Nhat in Ho Chi Minh City and Noi Baiin Hanoi.
The ACV, with a total capital of 14.6 trillion VND (686.2 million USD), would sell 25 percent of its stakes through an IPO.
Thenational flag carrier Vietnam Airlines plans to complete itsequitisation within 2014 and collect 200 million USD from the IPO.
TheBank for Investment and Development of Vietnam BIDV is seeking foreignstrategic partners, while the textile and garment group Vinatex ispreparing for IPO.-VNA
BlackstoneGroup, the big US investment bank and asset management group, nevershowed its interests in the Vietnamese market before. But its name wasrecently found on the list of the partners willing to becomeshareholders of GAS, a Vietnamese gas company listing on the Ho Chi MinhCity bourse.
In mid-January, GAS once again asked the Governmentto allow it to continue the equitisation. It proposed that the Stateeither sell part of the stakes it holds, or allow GAS to issue moreshares to increase its chartered capital. The shares to be issued wouldmostly target foreign strategic shareholders.
Under its plan,the money to be collected from the share issue would be used to buy theBlock B O Mon gas mine in the west of the southern region, which isbelieved to have a reserve big enough to ensure the input materials forfive power plants. The purchase would be made by GAS, PetroVietnam andits subsidiaries.
The story of GAS
Sources said that theGovernment has agreed in principle to allow PetroVietnam and GAS, asubsidiary, to buy Block B O Mon project with its own money.
GASnow needs a huge sum of money, nearly 1 billion USD, to buy the gaspipeline, 400 kilometres long, from the US Chevron group. And GAS needsto continue its equitisation process to get money to implement the plan.This is believed to be the most feasible solution.
GAS once madean initial public offering (IPO) in 2010, when it successfully issued62 million shares, or 3.28 percent of the State’s stakes. It has beenthe company with the biggest capitalisation value in the stock market,thus having big influences to the VN Index. About 2.5 percent of GAS’stakes is being held by foreigners, while the amount of shares availablefor transactions is limited, just 0.78 percent.
Vietnam should not miss the second opportunity
In2006-2007, before and after Vietnam officially joined the World TradeOrganization (WTO), it once had the golden opportunity to accelerate theequitisation and develop the finance market.
At that time,international experts said that billions of dollars worth of foreignportfolio investment was waiting to be disbursed for Vietnamesebusinesses’ IPOs. However, the opportunity was missed out.
And the second opportunity has come, even though it is smaller.
TheGovernment has urged big SOEs to restart the equitisation process,which got stagnant recently because of the gloomy stock market.
Lastmonth, the Ministry of Transport stated it planned to equitise the ACV,which manages tens of airports nationwide, including the two biggestinternational airports of Tan Son Nhat in Ho Chi Minh City and Noi Baiin Hanoi.
The ACV, with a total capital of 14.6 trillion VND (686.2 million USD), would sell 25 percent of its stakes through an IPO.
Thenational flag carrier Vietnam Airlines plans to complete itsequitisation within 2014 and collect 200 million USD from the IPO.
TheBank for Investment and Development of Vietnam BIDV is seeking foreignstrategic partners, while the textile and garment group Vinatex ispreparing for IPO.-VNA
