Sabeco shares jump max 20pc on debut
HANOI: Shares of state-controlled Saigon Beer, Alcohol, Beverage Corporation (Sabeco), Vietnam’s biggest brewer, jumped the maximum allowed 20 per cent upon listing yesterday as investors craved exposure to the dominant player in one of Asia’s most sought-after beer markets.
The market value of Sabeco rose to US$3.72 billion (RM16.5 billion), the fifth biggest listed firm in the Southeast Asian nation, as its shares hit 132,000 dong (RM25.78) compared to their opening price of 110,000 dong, data from the Ho Chi Minh Stock Exchange showed.
Sabeco, with a share of nearly 41 per cent of the domestic beer market, is one of the last profitable assets owned by the Vietnamese government, which has said it would sell its entire 89 per cent in the company by next year.
Kirin Holdings, Asahi Group Holdings, Thai Beverage Pcl, Heineken and Anheuser Busch Inbev SA were among around 20 investors that have expressed interest in buying stakes of Sabeco and smaller rival Habeco, said a government official in October.
Vietnam has been seeking to accelerate the initial public offerings (IPOs) of state-owned companies and list shares to boost investment and increase transparency.
The stock market debut of Sabeco, known for its Bia Saigon and 333 brews, had been moved forward from an initial plan of December 12, when the country’s state investment firm plans to sell a nine per cent stake in Vinamilk, the top dairy product maker.
“Sabeco is the sector’s leader, having an advantage of owning a chain of plants lying along the country,” said BIDV Securities in a note to clients on Monday. The brokerage has a target price of 168,653 dong on the stock.
Vietnam’s annual beer output is projected at 4.1 billion litres for 2020, up 21.7 per cent from last year, according to an Industry and Trade Ministry’s master plan approved in September, suggesting an annual average growth of around four per cent.
But the sector’s growth could be hindered by policy risks, including higher special consumption tax and plans to limit alcohol use at night time, said Saigon Securities in a Monday report on Sabeco’s listing.