PV Building successfully sold 2,325,000 shares

The Hanoi Stock Exchange has just auctioned 7,977,919 shares of PetroVietnam Building and Trading Joint Stock Company (PV Building) owned by Binh Son Refining and Petrochemical Company Limited (BSR). With a 29% success rate, BSR earned VND28.4 billion.

PV Building’s share auction on the morning of July 12, 2016 at the Hanoi Stock Exchange

The number of shares auctioned was 7,977,919 shares (CP) with a starting price of VND12,200/share. There were 19 investors (NDĐT) participating in the auction with a total number of shares registered to buy of 2,325,000 shares. As a result, the total number of shares successfully sold was 2,325,000 shares, all 19 investors won the bid at an average winning price of VND12,200/share. Thus, BSR’s target of divesting 45.53% of capital at PV Builidng was not achieved. With 2,325,000 shares successfully auctioned, equivalent to 13% of BSR’s equity at PV Building, BSR’s capital at PV Building after this auction decreased to 83.53%.

Commenting on this result, Mr. Tran Ngoc Nguyen – General Director of BSR said: “In the past 3 years, the domestic and foreign economies have been facing many difficulties. The GDP growth rate of the domestic economy has shown signs of slowing down, many businesses have gone bankrupt, dissolved or had to reduce production and business. Therefore, this is not a favorable time to attract capital from businesses and investors in the financial market. However, in the face of the urgent need to restructure state-owned corporations and groups as well as prepare for the equitization of BSR at the end of this year under the direction of the Government, the Ministry of Industry and Trade and the Vietnam Oil and Gas Group, the recent auction of PV Building shares at an average price of VND12,200/share has shown investors’ high appreciation for PV Building’s performance in the past year.”

In 2015, PV Building’s total revenue from sales and service provision reached VND600.8 billion, down 12% compared to the same period last year. PV Building’s revenue in 2015 mainly came from plastic pellets (accounting for about 64% of total revenue). In addition, the company also has revenue from packaging factory products, from pallet sales and revenue from rental services, house management and restaurant services… Although revenue decreased, PV Building’s net profit still reached more than 11 billion VND, up 10.3% thanks to a 5.5% increase in operating profit, at 14.1 billion VND. PV Building’s total assets as of December 31, 2015 reached 281.7 billion VND, up 5% compared to the end of 2014.

PV Building has a charter capital of over 175.2 billion VND, specializing in house construction, trading of all kinds of plastic beads; providing house management and rental services; manufacturing and trading of packaging products… Binh Son Refining and Petrochemical Company Limited is the controlling shareholder with a 96.53% ownership ratio; Cam Thanh Guest House owns 3.14% of the capital, the rest is held by PV Building staff. The number of shares that Binh Son Refining and Petrochemical Company is offering this time accounts for 45.53% of the charter capital.

Source: baocongthuong.com.vn