PVN urea arm to launch IPO

Wednesday, 19/11/2014
PetroVietnam Ca Mau Fertilizer Company Limited will launch its initial public offering (IPO) on December 11 with nearly 129 million shares offered at a reserve price of VND12,000 each on the Hochiminh Stock Exchange.

The urea manufacturing affiliate of Vietnam National Oil and Gas Group (PVN), expecting to raise over VND3.1 trillion from this IPO, will spur its chartered capital to nearly VND5.3 trillion, equivalent to 529.4 million shares.

The State will hold a 51% stake, equivalent to 270 million shares, while around 129 million shares (24.36%) will be offered to strategic investors and the same amount to other investors. The company will sell nearly 1.5 million shares (0.28%) to its employees.

After deducting charges and fees from the expected proceed of over VND3.1 trillion, the firm will hand over VND3.078 billion to its mother company PVN.   

The company will also adjust its name to PetroVietnam Ca Mau Fertilizer Joint Stock Company after the IPO. It said target strategic shareholders should have long-term commitments to the company, pledge to supply it with gas at a stable and competitive price and support the firm in the fields of governance, technology, research and development and consumption. They should have a strong financial capacity too.

PetroVietnam Ca Mau Fertilizer Company Limited has seen its output increasing over the past three years. It stood at 444,000 tons in 2012, 747,000 tons in 2013 and an estimated 772,000 tons in 2014.

The fertilizer maker said PVN will ensure the stable price of gas as feedstock for the company in the 2015-2018 period so that it can earn an average return on equity of 12% per annum. The company targets profit of nearly VND5.6 trillion in 2015, VND6.2 trillion in 2016, VND6.4 trillion in 2017 and VND7.4 trillion in 2018.

The company, which operates Ca Mau urea plant in Ca Mau Gas-Electricity-Fertilizer complex in Ca Mau Province, has its business portfolios including fertilizer and nitrogen production, petrochemicals and fertilizer export-import, logistics and finance investment.

Theo Saigon Times

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