The Government will reimburse an estimated loss of VND1.22 trillion (USD59 million) incurred by the state-owned Vietnam National Petroleum Corp (Petrolimex), according to one official.
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| Petrolimex now dominates the domestic petroleum market, holding about 55% of the market share. |
Petrolimex Chairman Bui Ngoc Bao said that the company, which is the country’s biggest petroleum trader, is expected to face losses in the first nine months of the year because it joined the national price stabilisation programme.
Bao told investors during the preparation of its initial public offering (IPO), in Ho Chi Minh City on July 14, that all past due debts would be settled before the company is equitised.
Petrolimex will sell a 5% stake, which amounts to about 53 million shares. Of the total, they will offer employees 2.45% ownership in the company and sell 2.56% to the public.
After the transfer, the state will hold 94.99% of the company\'s chartered capital. The IPO will be held at the Hanoi Stock Exchange, on July 28. Shares will begin at VND 15,000.
Currently, the corporation\'s chartered capital is estimated at around VND1.43 trillion (USD69.18 million), but they expect this to rise to close to VND11 trillion (USD518 million) after the IPO.
The firm hoes to make a pre-tax profit of VND648.5 billion (USD31.37 million) in the fourth quarter of this year. According to the company, this figure should rise to VND2.68 trillion (USD129.65 million) by 2012.
Last year, Petrolimex made a net profit of VND535 billion (USD25.88 million).
The firm now dominates the domestic petroleum market, holding about 55% of the market share.
