Vietnam approves Petrolimex’s plan for initial public offering

The government of Vietnam has approved the state-owned oil importer Petrolimex’s plan to make an initial public offering (IPO). The offering will pave the way for the company to sell off a 2.56% stake to the public. The total value of Petrolimex’s company shares is valued at VND10.7 trillion (US$250 million). The government will continue to hold 94.99% of the shares, while 1.98% will go to employees and 0.47% will be held for labor unions. State ownership of the company eventually will be reduced to 75%. The Ministry of Industry and Trade, in conjunction with the Ministry of Finance, is responsible for setting the offer price and timing of the IPO. Petrolimex, Vietnam’s largest domestic oil importer, is also looking for a strategic partner. (June 2,2011)