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Philippine Stock Exchange purchases San Miguel’s stake in PDS Holdings

PSE, PDS Holdings

PSE, PDS Holdings

15/1/2018 – The Philippine Stock Exchange (PSE) announced that it has forged a deal to acquire the stake of San Miguel Corporation (SMC) in a fixed-income bourse Philippine Dealing System Holdings Corp (PDS Holdings) for P80 million (about US$1.6 million).

According to details of the share purchase agreement, PSE will acquire SMC’s four percent stake covering 250,000 common shares in PDS Holdings to boost its stake in the exchange operator to 61.03 percent.

“This transaction is envisioned to facilitate further growth in the local capital markets by introducing efficiency in the trading and back-office systems of both the equities and fixed income markets, among others,” said a representative from PSE.

This is the sixth share purchase agreement signed by PSE as pertaining to its acquisition of additional shares in PDS Holdings.

In June 2017, PSE entered into an agreement to acquire the 23.47 percent stake of Bankers Association of the Philippines (BAP) Credit Bureau covering 1,466,800 common shares in PDS Holdings which was then worth at P437.8 million (about US$8.69 million).

Separate purchase agreements to acquire PDS Holdings shares were also signed with Investment Houses Association of the Philippines (IHAP), Whistler Technologies Services Inc (WTSI), the Philippine American Life, and General Insurance Co., and the Financial Executives Institute of the Philippines Research and Development Foundation.

“All of the above-mentioned purchases shall be subject to the approval of government agencies, particularly the Securities and Exchange Commission (SEC) and Philippine Competition Commision (PCC) as required by law and regulation,” noted PSE.

Other major shareholders of PDS Holdings include the Singapore Stock Exchange, Tata Consultancy Services Asia-Pacific Phils Incorporated, Development Bank of the Philippines, Social Security System, and Citibank NA.

PDS Holdings’ parent firm PDS Group is a capital market infrastructure that also owns and operates the Philippine Dealing & Exchange Corp (PDEx), Philippine Depository & Trust Corp (PDTC), Philippine Securities Settlement Corp (PSSC), and PDS Academy for Market Development Corp (PDSA).

PetroVietnam to raise more than US$570 million from three IPO subsidiaries in January 2018

PetroVietnam
PetroVietnam to raise more than US$570 million from three IPO subsidiaries in January 2018

PetroVietnam

15/1/2018 – State-owned oil and gas company PetroVietnam is looking to place three of its subsidiaries for an Initial Public Offering this month. The three wholly-owned subsidiaries are Binh Son Refining and Petrochemical (BSR), PetroVietnam Oil Corporation (PV Oil), and PetroVietnam Power Corporation (PV Power).

BSR and PV Oil is slated to debut on the Ho Chi Minh Stock Exchange (HOSE), while PV Power will list on the Hanoi Stock Exchange.

BSR’s IPO to raise US$154 million on Wednesday, January 17

Operating the country’s first oil refinery in Dung Quat, BSR will conduct its IPO first on January 17. The firm will be selling almost 241.6 million shares, which equivalent to 7.79 percent of its charter capital to the public at an initial price of VND 14,600 (about US$0.64) to raise US$154 million.

The starting price gives it a valuation of US$2 billion, making it the largest state-owned firm in the country to hold an IPO. At present, BSR’s charter capital is standing at VND 31 trillion, which translates to about US$1.36 billion.

On the other hand, BSR will offer preferential shares worth 0.21 percent of its charter capital to its employee, in addition to offloading another 49 percent stake to strategic investors. Parent company PetroVietnam (PVN) which represents the state will retain 43 percent of BSR’s charter capital.

The company has initially scheduled an earlier IPO in November 2017 which was later delayed as due to the company plans of offloading a larger stake than the 4 percent it was initially looking to divest. BSR’s CEO Tran Ngoc Nguyen explained that the proposed increase in the IPO size was due to BSR’s better business performance.

“After IPO, BSR’s equitization will help arrange finance for strategic investments,” said a senior representative of BSR. “The firm will focus on investment activities related to petrochemicals and deep-processing industries, which have great development potential.”

PV Oil’s IPO to raise US$121 million on Thursday, January 25

Another PetroVietnam subsidiary – PV oil will be offering 206.8 million shares, representing 20 percent of its charter capital for sale in an IPO on January 25.

The shares will be offered at a starting price of VND13,400 (about US$0.59) per share, and is expected to fetch the company about US$121.97 million. Similarly, the employees are entitled to a preferential 1.8 million shares which represents 0.18 percent of the charter capital.

Through a private placement, PV Oil will also offer 44.72 percent of shares to strategic investors – altogether reducing the government’s ownership in PV Oil to 35.1 percent.

As the second largest petroleum distributor in the country after Vietnam National Petroleum Group (Petrolimex), PV Oil owns 20 to 22 percent of the market share.

PV Power’s IPO to raise US$295 million on Wednesday, January 31

PetroVietnam Power Corporation (PV Power), on the other hand is looking to offload 20 percent of its charter capital, represented by 468.3 million shares at a starting price of VND 14,400 (about US$0.64) per share.

Established in 2007, the company which operates various power firms with a total annual production of more than 4,208 megawatts will be listing on the Hanoi Stock Exchange (HNX), and looking to raise at least VND6.74 trillion (about US$295 million) from the IPO.

After the equitization process is completed, the market capitalization of PV Power will reach an estimation of US$1.48 billion while its charter capital is projected at VND23.4 trillion (about US$1.04 billion).