Vietnam's Petrolimex Petrochemical Company (PLC) raised $4 million from auctioning around 1 million new shares on Monday, the over-the-counter Hanoi stock market said.
The Hanoi-based firm had said it wanted to raise at least $18.6 million by selling 5 million shares, but investors bought only 1,096,500 shares at the auction at an average price of 60,250 dong, the market said in a statement.
Foreigners bought 754,500 shares, it said without giving a reason for the lower-than-expected sale.
The company, also known as PLC, produces and trades lubricants and bitumen.
It plans to sell another tranche of 5 million new shares next year to raise its chartered capital to 250 billion dong ($15.5 million) from 150 billion dong.
State-owned parent Petrolimex, which controls 60 percent of Vietnam's oil product import and retail market, would reduce its stake in PLC to 51 percent by 2010 from 85 percent now, PLC's prospectus published last month said.
Shares in PLC closed down 11 percent at 52,500 dong ($3.3) on Monday, valuing the firm at nearly $50 million.
Source: Reuters
Showing posts with label Chemicals. Show all posts
Showing posts with label Chemicals. Show all posts
Monday, July 16, 2007
Vietnam fertiliser maker plans Q3 listing
State-run Petrovietnam Fertiliser and Chemicals Company (PVFCC), with a market value of $1.4 billion, plans to list on domestic markets within the third quarter, the company said on Monday.
Shareholders of PVFCC, 60.05 percent owned by state oil and gas Petrovietnam group, have asked its management board to seek a listing either on the Ho Chi Minh Stock Exchange or the over-the-counter Hanoi market, Chairman Dinh Huu Loc said in the statement.
Loc did not say how much PVFCC planned to raise from the listing.
Shares in PVFCC eased to 58,000-60,000 dong ($3.6-$3.7) on the unofficial markets late last week from 63,000-65,000 dong in late June prior to the listing decision.
Shareholders met on June 30 for the first time after PVFCC sold one third of its shares to the public at an initial public offering in April, and raised more than $430 million.
State-run Vietindebank, Vietnam's second-largest by assets, owns 19 million shares in PVFCC, or 5 percent of the company. Asia Commercial Bank (ACB), one of Vietnam's two listed banks, owns 1 percent with 3.8 million shares.
PVFCC operates Vietnam's only fertiliser plant, the Phu My Urea Plant in the southern province of Ba Ria-Vung Tau. Its urea production and the fertiliser it imports meet 40 percent of Vietnam's domestic demand.
Source: Reuters
Shareholders of PVFCC, 60.05 percent owned by state oil and gas Petrovietnam group, have asked its management board to seek a listing either on the Ho Chi Minh Stock Exchange or the over-the-counter Hanoi market, Chairman Dinh Huu Loc said in the statement.
Loc did not say how much PVFCC planned to raise from the listing.
Shares in PVFCC eased to 58,000-60,000 dong ($3.6-$3.7) on the unofficial markets late last week from 63,000-65,000 dong in late June prior to the listing decision.
Shareholders met on June 30 for the first time after PVFCC sold one third of its shares to the public at an initial public offering in April, and raised more than $430 million.
State-run Vietindebank, Vietnam's second-largest by assets, owns 19 million shares in PVFCC, or 5 percent of the company. Asia Commercial Bank (ACB), one of Vietnam's two listed banks, owns 1 percent with 3.8 million shares.
PVFCC operates Vietnam's only fertiliser plant, the Phu My Urea Plant in the southern province of Ba Ria-Vung Tau. Its urea production and the fertiliser it imports meet 40 percent of Vietnam's domestic demand.
Source: Reuters
Monday, June 18, 2007
Malaysia's Petronas increases stake in Vietnam firm
Malaysian state oil firm Petronas said on Monday it had agreed to acquire a stake in a Vietnamese chemical firm from the country's state oil monopoly Petrovietnam.
Petrovietnam will transfer its stake of 43% in polyvinyl chloride manufacturer Phu My Plastics and Chemicals to an international investment subsidiary of the Malaysian firm, Petronas International Corp Ltd, Petronas said in a statement.
It gave no financial details of the transaction.
The two parties were in the final stages of finalising the documents prior to seeking approval from Vietnamese authorities, Petronas added.
Petronas, which now owns 50% of Phu My, said it had also begun transferring its own stake to its investment unit, which will eventually own 93% of the Vietnamese company. Phu My owns and runs a PVC plant of 100,000 tonnes annual capacity in the province of Ba Ria Vung Tau, about 85 km southeast of Ho Chi Minh City.
Source: Reuters
Petrovietnam will transfer its stake of 43% in polyvinyl chloride manufacturer Phu My Plastics and Chemicals to an international investment subsidiary of the Malaysian firm, Petronas International Corp Ltd, Petronas said in a statement.
It gave no financial details of the transaction.
The two parties were in the final stages of finalising the documents prior to seeking approval from Vietnamese authorities, Petronas added.
Petronas, which now owns 50% of Phu My, said it had also begun transferring its own stake to its investment unit, which will eventually own 93% of the Vietnamese company. Phu My owns and runs a PVC plant of 100,000 tonnes annual capacity in the province of Ba Ria Vung Tau, about 85 km southeast of Ho Chi Minh City.
Source: Reuters
Wednesday, May 30, 2007
State tries to recover accrued earnings from PVFC equitisation
The Ministry of Finance chose the final day of PetroVietnam Fertiliser and Chemical Co's IPO last week to propose recovering VND1tril (US$65mil) in accrued earnings from the company.
The ministry claimed the earnings, accrued when PVFCCo was a State-owned entity during 2004-06, represented windfall profits earned when the State subsidised its energy costs.
The timing of the ministry proposal, made on the day set as the deadline for winning bidders in the IPO to either purchase the shares or withdraw their offers, has disturbed many who participated in the bidding.
Investor Nguyen Thi Thu worries that the market value of the shares she bought during the IPO will plummet if the ministry acts on its proposal.
"I bought 5,000 shares," she said, "but now I am wondering whether the collection of VND1tril ($62.5mil) from the company's profits will affect my shares."
A securities broker reported that on Friday, May 25, shares of PVFCCo stood at VND74,000 ($4.60) each, but the price was likely to react negatively as news of the ministry action spreads.
PVFCCo general director, Trinh Thanh Binh has tried to soothe the fears of investors, saying that the profits the company earned during 2004-06 as a State-owned company are not included in the company's VND3.8tril ($237.5mil) worth of charter capital.
Shares sold during the IPO represented 40% of this charter capital, so investors who bought shares during the IPO will not suffer any loss.
The profits belonged to PetroVietnam, the parent company of PVFCCo, Binh explained, and were not included in the financial reports issued when the company equitised.
Securities expert Huy Nam agreed saying that the accrued earnings were not part of PVFC's auction of shares and were not accrued to the benefit of the investors during the company's equitisation.
According to the Ministry of Finance, total profits of over VND2tril made during 2004-06 represented something of a windfall due to the low price of gas which the company enjoyed as a State-owned entity.
Prior to its IPO, the company bought thermal units at US$1.30 per one million British thermal unit (BTU), far lower than the price paid by other companies.
A member of PetroVietnam's management board, Phan Thi Hoa, affirmed that the company's input costs for gas would climb to $2.20-3.60 per one million BTU now that the company has equitised.
"The new price was approved by the Ministry of Industry and disclosed in the financial reports [prior to the IPO]," said Binh. "The investors do not therefore need worry about the profit potential of the company."
Meanwhile, according to the ministry, preferential costs of thermal input for State-owned enterprises would now be contrary to the nation's WTO commitments, making recovery of the windfall profits the correct action.
Deputy Minister of Planning and Investment Truong Van Doan disagreed, however, saying, "Whether to collect the profits or not should take into account PVFCCo's ability to ensure its profit potential in the future when input sources become more scare and fertiliser prices on the market become depressed."
Source: VNE
The ministry claimed the earnings, accrued when PVFCCo was a State-owned entity during 2004-06, represented windfall profits earned when the State subsidised its energy costs.
The timing of the ministry proposal, made on the day set as the deadline for winning bidders in the IPO to either purchase the shares or withdraw their offers, has disturbed many who participated in the bidding.
Investor Nguyen Thi Thu worries that the market value of the shares she bought during the IPO will plummet if the ministry acts on its proposal.
"I bought 5,000 shares," she said, "but now I am wondering whether the collection of VND1tril ($62.5mil) from the company's profits will affect my shares."
A securities broker reported that on Friday, May 25, shares of PVFCCo stood at VND74,000 ($4.60) each, but the price was likely to react negatively as news of the ministry action spreads.
PVFCCo general director, Trinh Thanh Binh has tried to soothe the fears of investors, saying that the profits the company earned during 2004-06 as a State-owned company are not included in the company's VND3.8tril ($237.5mil) worth of charter capital.
Shares sold during the IPO represented 40% of this charter capital, so investors who bought shares during the IPO will not suffer any loss.
The profits belonged to PetroVietnam, the parent company of PVFCCo, Binh explained, and were not included in the financial reports issued when the company equitised.
Securities expert Huy Nam agreed saying that the accrued earnings were not part of PVFC's auction of shares and were not accrued to the benefit of the investors during the company's equitisation.
According to the Ministry of Finance, total profits of over VND2tril made during 2004-06 represented something of a windfall due to the low price of gas which the company enjoyed as a State-owned entity.
Prior to its IPO, the company bought thermal units at US$1.30 per one million British thermal unit (BTU), far lower than the price paid by other companies.
A member of PetroVietnam's management board, Phan Thi Hoa, affirmed that the company's input costs for gas would climb to $2.20-3.60 per one million BTU now that the company has equitised.
"The new price was approved by the Ministry of Industry and disclosed in the financial reports [prior to the IPO]," said Binh. "The investors do not therefore need worry about the profit potential of the company."
Meanwhile, according to the ministry, preferential costs of thermal input for State-owned enterprises would now be contrary to the nation's WTO commitments, making recovery of the windfall profits the correct action.
Deputy Minister of Planning and Investment Truong Van Doan disagreed, however, saying, "Whether to collect the profits or not should take into account PVFCCo's ability to ensure its profit potential in the future when input sources become more scare and fertiliser prices on the market become depressed."
Source: VNE
Tuesday, April 24, 2007
PVFCC raises more than 430 US$ in IPO
State-run Petrovietnam Fertiliser and Chemicals Company raised more than $430 million in an initial public offering of a third of its shares, brokers said on Tuesday.
The firm, a member of the Petrovietnam group, sold 128,626,600, or 33.8%, of its shares on April 21 at an average price of 54,400 dong ($3.37) each, they said.
The price was nearly 9% above the company's initial bidding price of 50,000 dong ($3.1) and suggested the company was valued at nearly $1.3 billion, brokers in Ho Chi Minh City said.
The firm, known as PVFCC, operates Vietnam's only fertiliser plant, the Phu My Urea Plant in the southern province of Ba Ria-Vung Tau. It has yet to announce a listing plan or say what it plans to do with the proceeds.
The urea it produces and the fertiliser it imports meet 40% of Vietnam's domestic demand.
PVFCC started operations in January 2004 and its Phu My plant is designed to produce 2,200 tonnes of urea per day.
Vietnam still imported 3.05 million tonnes of fertiliser last year, up 5.9% from 2005, but urea imports fell 17.8% to 708,000 tonnes, government statistics show.
Source: Reuters
The firm, a member of the Petrovietnam group, sold 128,626,600, or 33.8%, of its shares on April 21 at an average price of 54,400 dong ($3.37) each, they said.
The price was nearly 9% above the company's initial bidding price of 50,000 dong ($3.1) and suggested the company was valued at nearly $1.3 billion, brokers in Ho Chi Minh City said.
The firm, known as PVFCC, operates Vietnam's only fertiliser plant, the Phu My Urea Plant in the southern province of Ba Ria-Vung Tau. It has yet to announce a listing plan or say what it plans to do with the proceeds.
The urea it produces and the fertiliser it imports meet 40% of Vietnam's domestic demand.
PVFCC started operations in January 2004 and its Phu My plant is designed to produce 2,200 tonnes of urea per day.
Vietnam still imported 3.05 million tonnes of fertiliser last year, up 5.9% from 2005, but urea imports fell 17.8% to 708,000 tonnes, government statistics show.
Source: Reuters
Thursday, April 12, 2007
Transport capacity hinders fertiliser production
The lack of input materials caused by limited transport capability has caused big difficulties for local fertiliser producers.
The Southern Fertiliser Company said that it had to transport apatite ore from Lao Cai in the north to its plant in Long Thanh district in the southern province of Dong nai. The company first carried apatite ore from Lao Cai to Hai Phong port by train, and then shipped ore from Hai Phong to Long Thanh district by sea.
However, as the transportation fees of both means of transport have increased considerably in the last time, and the transportation capability is limited, the company cannot get enough materials to feed the production line.
Bui Quang Lanh, Director of Van Dien Phosphate Fertiliser Company, said that since January 1, 2007, input material transportation fees had increased by VND30,000/tonne, while the fees for carrying finished products to consumption points had also increased by VND40,000/tonne. At the same time, the prices of many kinds of input material have increased sharply, making the production cost of fertiliser much higher.
Despite the higher transportation fees, companies are still facing difficulties in transporting input materials to their plants or carrying finished products to consumption places due to bad transport capability.
Urea, Kali, SA, DAP, the main input materials for NPK fertiliser, which account for 70-90% of NPK content, all have seen sharp price increases. The price of urea, for example, has risen from VND4,400.kg to VND5,000/kg, kali from VND3,600/kg to VND4,000/kg. It is estimated that the production cost of one tonne of NPK has increased by VND150-300,000.
The Lam Thao Superphosphate and Chemicals Company said that the company put out 650,000 tonnes a year, a half of which must be made right at this time to be provided to farmers for the summer-autumn crop. However, the company is facing big difficulties due to the dramatic increases in prices.
Mr Lanh from Van Dien Phosphate Fertiliser Company said that the company had raised its selling price by VND30,000/tonne for phosphate fertiliser, and VND50-100,000/tonne for NPK, commencing April 1. However, the increases prove to be not enough to cover the input material price increases.
He said that since January 1, 2007, the production cost for one tonne of phosphate fertiliser had increased by VND110,000/tonne, and for NPK by VND150-300,000. However, the company did not raise the selling price in the first quarter of the year, thus ‘giving’ farmers VND8-10bil.
Mr Lanh has announced that phosphate fertiliser will see the price increase of VND30,000/tonne as of May 1, 2007, and another VND40,000/tonne as of June 1, 2007.
Source: VNE
The Southern Fertiliser Company said that it had to transport apatite ore from Lao Cai in the north to its plant in Long Thanh district in the southern province of Dong nai. The company first carried apatite ore from Lao Cai to Hai Phong port by train, and then shipped ore from Hai Phong to Long Thanh district by sea.
However, as the transportation fees of both means of transport have increased considerably in the last time, and the transportation capability is limited, the company cannot get enough materials to feed the production line.
Bui Quang Lanh, Director of Van Dien Phosphate Fertiliser Company, said that since January 1, 2007, input material transportation fees had increased by VND30,000/tonne, while the fees for carrying finished products to consumption points had also increased by VND40,000/tonne. At the same time, the prices of many kinds of input material have increased sharply, making the production cost of fertiliser much higher.
Despite the higher transportation fees, companies are still facing difficulties in transporting input materials to their plants or carrying finished products to consumption places due to bad transport capability.
Urea, Kali, SA, DAP, the main input materials for NPK fertiliser, which account for 70-90% of NPK content, all have seen sharp price increases. The price of urea, for example, has risen from VND4,400.kg to VND5,000/kg, kali from VND3,600/kg to VND4,000/kg. It is estimated that the production cost of one tonne of NPK has increased by VND150-300,000.
The Lam Thao Superphosphate and Chemicals Company said that the company put out 650,000 tonnes a year, a half of which must be made right at this time to be provided to farmers for the summer-autumn crop. However, the company is facing big difficulties due to the dramatic increases in prices.
Mr Lanh from Van Dien Phosphate Fertiliser Company said that the company had raised its selling price by VND30,000/tonne for phosphate fertiliser, and VND50-100,000/tonne for NPK, commencing April 1. However, the increases prove to be not enough to cover the input material price increases.
He said that since January 1, 2007, the production cost for one tonne of phosphate fertiliser had increased by VND110,000/tonne, and for NPK by VND150-300,000. However, the company did not raise the selling price in the first quarter of the year, thus ‘giving’ farmers VND8-10bil.
Mr Lanh has announced that phosphate fertiliser will see the price increase of VND30,000/tonne as of May 1, 2007, and another VND40,000/tonne as of June 1, 2007.
Source: VNE
Monday, April 02, 2007
Fertilizer giant plans April IPO
State-run oil and gas group affiliate PetroVietnam Fertilizer and Chemical Co (PVFC Co) is set to sell 33.85% of its capital in an IPO on April 21.
The company, with a chartered capital of VND3.8 trillion (US$237 million) will sell over 128.6 million shares to outsiders at a starting price of VND50,000 per share.
Trinh Thanh Binh, general director of the company said the IPO, involving the sale of over 128 million shares, represents the largest such share auction ever in the country.
Between April 2 and April 12, the deadline for auction registration investors are advised to register their purchases and attend a briefing on the firm at 14 securities companies in the Ho Chi Minh City and Hanoi.
The IPO is to be held at the HCMC Securities Trading Center.
PVFC Co, Vietnam’s largest nitro-fertilizer producer with a factory at the Phu My Power-Fertilizer-Gas Complex in the Ba Ria- Vung Tau Province, mainly produces urea, ammonia liquid, industrial gas, and other gas-originated products.
It posted a turnover last year of VND2.9 trillion from selling urea and ammonia products, a year-on-year increase of 10%.
The firm, which churns out 800,000 tons of urea per year, meets 40% of the nation’s urea demand and up to 60% in the southern region.
The Phu My factory started production in 2004 with a total investment capital of $380 million, contributing to lessen agricultural reliance on imported urea.
The country has two state-run fertilizer factories in operation, the other being the northern Bac Giang-based Ha Bac factory, which has a smaller annual output of 150,000 tons of urea.
Source: Thanh Nien
The company, with a chartered capital of VND3.8 trillion (US$237 million) will sell over 128.6 million shares to outsiders at a starting price of VND50,000 per share.
Trinh Thanh Binh, general director of the company said the IPO, involving the sale of over 128 million shares, represents the largest such share auction ever in the country.
Between April 2 and April 12, the deadline for auction registration investors are advised to register their purchases and attend a briefing on the firm at 14 securities companies in the Ho Chi Minh City and Hanoi.
The IPO is to be held at the HCMC Securities Trading Center.
PVFC Co, Vietnam’s largest nitro-fertilizer producer with a factory at the Phu My Power-Fertilizer-Gas Complex in the Ba Ria- Vung Tau Province, mainly produces urea, ammonia liquid, industrial gas, and other gas-originated products.
It posted a turnover last year of VND2.9 trillion from selling urea and ammonia products, a year-on-year increase of 10%.
The firm, which churns out 800,000 tons of urea per year, meets 40% of the nation’s urea demand and up to 60% in the southern region.
The Phu My factory started production in 2004 with a total investment capital of $380 million, contributing to lessen agricultural reliance on imported urea.
The country has two state-run fertilizer factories in operation, the other being the northern Bac Giang-based Ha Bac factory, which has a smaller annual output of 150,000 tons of urea.
Source: Thanh Nien
Friday, March 16, 2007
Chemical companies to be equitised in 2007
The Vietnam National Chemical Corporation (Vinachem) has said that its nine companies will be listed in the stock market in 2007.
They are equitised companies that the state still holds control, including: the Southern Rubber Industrial JS Company, Gold Star Rubber JS Company, Vietnam Antiseptic JS Company, Ninh Binh Phosphate JS Company, Tia Sang Battery JS Company, Phuong Dong Trade JS Company, Can Tho Fertiliser and Chemical JS Company, Viet Tri Chemical JS Company and Hanoi Detergent JS Company.
Last year two unit members of Vinachem, the Da Nang Rubber JS Company (DRC) and the Southern Battery JS Company (Pinaco), quoted their shares on the HCM City Securities Trading Centre.
The prices of DRC and Pinaco are now 2-5 times more than their face values.
Source: VNE
They are equitised companies that the state still holds control, including: the Southern Rubber Industrial JS Company, Gold Star Rubber JS Company, Vietnam Antiseptic JS Company, Ninh Binh Phosphate JS Company, Tia Sang Battery JS Company, Phuong Dong Trade JS Company, Can Tho Fertiliser and Chemical JS Company, Viet Tri Chemical JS Company and Hanoi Detergent JS Company.
Last year two unit members of Vinachem, the Da Nang Rubber JS Company (DRC) and the Southern Battery JS Company (Pinaco), quoted their shares on the HCM City Securities Trading Centre.
The prices of DRC and Pinaco are now 2-5 times more than their face values.
Source: VNE
Wednesday, January 10, 2007
Petrochemical Company prepares for auction
The Nitrogenous Fertilizer and Petrochemical Company (PVFCCo) will auction its shares for the first time at the end of the first quarter this year.
The daily “Lao Dong” (Labour) quoted a company source as saying that PVFCCo is working out its auction plan, in which the State will hold controlling stake of more than 50% of the total shares.
It is scheduled that together with the auction, the Phu My Nitro-fertilizer Factory, run by PVFCCo, will list its shares on the stock market.
The modern factory has been in operation since 2002 with a daily capacity of 2,200 tonnes of urea fertilizer and 1,350 tonnes of ammonia.
Source: VNA
The daily “Lao Dong” (Labour) quoted a company source as saying that PVFCCo is working out its auction plan, in which the State will hold controlling stake of more than 50% of the total shares.
It is scheduled that together with the auction, the Phu My Nitro-fertilizer Factory, run by PVFCCo, will list its shares on the stock market.
The modern factory has been in operation since 2002 with a daily capacity of 2,200 tonnes of urea fertilizer and 1,350 tonnes of ammonia.
Source: VNA
Friday, November 10, 2006
3 IPOs in the energy and chemicals sectors
Vietnam Petroleum Transport Company (Vipco), Tan Tien Plastic Packaging Co (Tapack) and Dry Cell and Storage Battery Co (Pinaco) had been licensed to list at HCMC stock exchange.
The three are among 30 companies seeking a listing license or preparing a share debut on the Ho Chi Minh City Securities Trading Center by the end of the year to get tax relief for listed firms before it ends on Jan. 1, 2007.
Tapack, a maker of plastic packaging material, will list all its 10,655,000 shares. They were priced at $3.39 each on the unofficial market, valuing the firm at $36 million.
Pinaco, a producer of various kinds of battery, is allowed to list 10,263,000 shares and is valued at $18.5 million based on its unofficial market share price of $1.8 each.
While the value of the petroleum transport firm Vipco was not immediately available, the subsidiary of Petrolimex based in the northern port city of Haiphong will list all its 35,100,000 shares.
The three are among 30 companies seeking a listing license or preparing a share debut on the Ho Chi Minh City Securities Trading Center by the end of the year to get tax relief for listed firms before it ends on Jan. 1, 2007.
Tapack, a maker of plastic packaging material, will list all its 10,655,000 shares. They were priced at $3.39 each on the unofficial market, valuing the firm at $36 million.
Pinaco, a producer of various kinds of battery, is allowed to list 10,263,000 shares and is valued at $18.5 million based on its unofficial market share price of $1.8 each.
While the value of the petroleum transport firm Vipco was not immediately available, the subsidiary of Petrolimex based in the northern port city of Haiphong will list all its 35,100,000 shares.
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