Given Price Tag of $3.15 Billion, Sabeco to Debut Shares on Dec. 12

Tuan Minh

10:51 15/11/2016

BizLIVE - Vietnam’s largest brewer Sabeco will make its share debut on December 12.

Given Price Tag of $3.15 Billion, Sabeco to Debut Shares on Dec. 12

Sabeco is slated to debut its shares on Dec. 12. Photo: Internet

Sabeco, the largest brewer in Vietnam, is poised to debut its shares on the Ho Chi Minh Stock Exchange on December 12, as part of the government’s efforts to sell its holdings in brewery assets, according to a government official.
“The consultant firm advising the listing has prepared that Sabeco will make its share debut on December 12,” Phan Dang Tuat, head of the Ministry of Industry and Trade’s Enterprise Renovation And Development Committee, told Reuters.
The Tuoi Tre newspaper cited its sources as saying that the ministry has approved the initial price of Sabeco at its debut session at 110,000 dong ($4.92) a share.
With this price, Sabeco, which has a registered capital of 6.41 trillion dong ($287 million), is valued at 70.54 trillion dong ($3.15 billion).
The ministry now holds an 89.59% in Sabeco, which stands for Saigon Beer, Alcohol and Beverage Corp, and Heineken 5%.
Under a planned roadmap, the ministry will unload a 53.59% stake in the brewery firm by the end of this year. The remainder will be divested next year.
A number of international brewery giants including Heineken, Ab-Inbev, Singha, Thai Beverage, Asahi Group, and Kirin Holdings have shown interest in acquiring strategic shares in Sabeco, envisaging a fierce competition.
Sabeco reportedly takes a 43% share in Vietnam’s beer market, leaving rivals such as Heineken, Habeco, and Carlsberg far behind.
The firm earned a pre-tax profit of $201.88 million on revenue of $976 million in the first three quarters of this year, rising 21% and 9% from the same period last year.
With the debut price of 110,000 dong a share, Sabeco has a trailing P/E ratio of 18.7x, lower than the industry average of 28.7x and 21.3x of Vinamilk, according to CafeF.vn’s data.

TUAN MINH