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PetroVietnam Gas Corp. plans to start trading shares on May 21, amid gains in Asia’s best-performing stock market this year, making it the second most-valuable company in Vietnam.
The company will list 1.895 billion shares on the Ho Chi Minh City Stock Exchange at an initial price of 36,000 dong each, according to a statement on its website today. The price would give it a market value of 68.22 trillion dong ($3.27 billion), the second largest after Joint-Stock Commercial Bank for Foreign Trade of Vietnam, or Vietcombank.
State-owned Vietnam Oil & Gas Group sold a 3.2 percent stake in unit PV Gas, as the company is known, in an initial public offering in November 2010, raising 1.89 trillion dong. The VN Index (VNINDEX) has gained 33 percent this year, the third-biggest advance among 96 major stock indexes in the world, as inflation eased and the government cut key policy rates to support growth.
“It’s a good time to list as the stock market is on an uptrend, making it easier to absorb new stocks,” said Nguyen Hoai Nam, deputy head of research at Kim Eng Vietnam Securities Co. “The PV Gas listing will also boost market capitalization, making the Vietnamese market more attractive to foreign investors.”
PV Gas won final exchange approval to list the shares on April 27.
“We were planning to list in 2011 but the economy faced a lot of difficulties with high interest and inflation rates,” Nguyen Thi Lan, chairwoman of PV Gas, said in an e-mail today. This year, “both the economy and the stock market had many positive changes, attracting a lot of domestic and foreign investors, so we’ve decided to list at this time.”
The listing process has standardized the company’s operations and improved transparency of information from the company, according to PV Gas.
“Shareholders also approved the plan to list in Singapore and the company will work with its advisers to list there at the most suitable time,” Lan said in the e-mail.
The company’s main businesses include the transportation, storage and marketing of gas.
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