According to information from BSR, on August 21, 2024, BSR submitted a listing registration dossier for 3.1 billion BSR shares to the Ho Chi Minh City Stock Exchange (HOSE) of Binh Son Refinery and Petrochemical Joint Stock Company, corresponding to a current charter capital of over VND 31,004 billion.
BSR is the operator of the Dung Quat Oil Refinery – a project of national importance related to national security, with a total investment of over $3 billion, ensuring the country’s energy security. BSR successfully conducted its IPO in January 2018, and its shares were listed on the UPCoM of the Hanoi Stock Exchange from March 2018.
From 2020 to 2023, BSR was unable to list its shares on HOSE as it only met 8 out of 9 criteria (Charter Capital; Approved by the General Meeting of Shareholders; Minimum 2 years of listing on UPCoM; Profitable business results for the last 2 years and ROE of the latest year above 5%; Minimum 15% of voting shares held by at least 100 shareholders (excluding major shareholders); Commitment of internal shareholders on shareholding; No violations in the last 2 years up to the time of listing registration; Having a securities company advising on listing registration). BSR only fell short on one criterion regarding overdue debts related to its subsidiary, Binh Son Petroleum Biofuel Joint Stock Company (BSR-BF). According to its financial statements, BSR has made full provisions for these debts to completely eliminate financial risks. At the 2024 General Meeting of Shareholders, BSR affirmed that it is expediting the completion of procedures to file for bankruptcy of BSR-BF at the People’s Court of Quang Ngai province, while actively working with the State Securities Commission to finalize the last steps towards listing BSR shares on HOSE as soon as possible.
A significant milestone for BSR was marked on August 15, 2024, when it published its reviewed semi-annual financial statements. The auditor’s conclusion in this report stated: On May 27, 2024, the Court issued Decision No. 01/2024/QD-MTTPS to initiate bankruptcy proceedings for BSR-BF, thereby terminating the control rights of Binh Son Refinery and Petrochemical Joint Stock Company at BSR-BF. As a result, the financial statements of BSR-BF were discontinued from consolidation into the consolidated mid-year financial statements of the Company from this date. This implies that BSR has addressed the criterion regarding overdue debts and is eligible for listing on HOSE.
The efforts to transition from UPCoM to HOSE demonstrate BSR’s leadership determination to fulfill their commitments to shareholders. This move is also expected to enhance transparency and liquidity for BSR’s shares, making it easier for the company to access domestic and foreign capital. Additionally, the “change of venue” will make BSR’s shares more attractive, adding value for investors.
With a market capitalization of up to VND 74,700 billion (ranked 21st compared to companies on HOSE as of August 16, 2024), once approved for the transfer to HOSE, BSR will become a Blue-chip stock and is expected to be included in the VN30 basket in the near future. The arrival of this high-quality “blockbuster” is anticipated to attract additional investment capital into the stock market from individual and institutional investors, both domestic and foreign.
Source: Bloomberg, PSI Consolidated
According to analysis from PSI Securities Corporation, BSR is expected to increase its output in the last six months to make up for the lost production during the refinery’s overall maintenance period, so revenue in the second half is expected to grow strongly compared to the first half. In addition, BSR is planning to increase its charter capital to VND 50,000 billion to balance capital sources for the Dung Quat Refinery Expansion Project. The capital increase plan is being reported to the major shareholder, Vietnam Oil and Gas Group, and competent authorities.
BSR is also actively coordinating with Quang Ngai province, the Ministry of Industry and Trade, and the Central Economic Commission to finalize the outline for the National Refinery, Petrochemical, and Energy Center project in Dung Quat Economic Zone, with the goal of completing the proposal and submitting it to the Prime Minister for consideration in 2024. According to the proposal, Dung Quat Refinery will be the nucleus of the National Refinery, Petrochemical, and Energy Center in Dung Quat Economic Zone.
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