Saigon Beer kicks off global roadshow ahead of IPO

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Vietnam’s largest beer company Saigon Beer Alcohol Beverage Corp, or Sabeco, has commenced its international roadshow in Singapore on November 24, ahead of the much-anticipated share sales by the Vietnamese government.

The exact amount of shares it will sell will be decided after roadshows in Singapore, London and Ho Chi Minh City in the next few days, a senior government official said, adding that the plan is for Vietnam to unload a “significant portion” of its ownership before year-end. However, there was speculation that the government intends to maintain its stakes over 35 per cent so it can continue to hold the veto rights.

The government currently owns close to 90 per cent of Sabeco. Depending on the level of buyer interest, Vietnam could sell up to 54 per cent of the decades-old company and cease to be its majority owner in what could be a multibillion-dollar deal in the coming weeks. The government stake in Sabeco is estimated to be worth $5.3 billion.

The foreign ownership in Sabeco is capped at 49 per cent. Vietnamese authorities have discussed breaking up the 54-per-cent stake into smaller lots to auction off, but it may also change the sales method or the foreign ownership limit.

Sabeco has been attracting a particularly high level of interest from international investors because of the company’s strong growth potential and the Vietnamese domestic beer market being the largest in Southeast Asia and the fifth-largest in Asia. Vietnamese drink 4.1 billion liters of beer a year, and their thirst for it is rising in tandem with economy growth of nearly seven per cent.

According to Sabeco’s CEO Le Hong Xanh, seven beer companies have registered an interest in buying into the Saigon-based company, namely Anheuser-Busch InBev, Heineken, Carlsberg, Thai Beverage, Singha Corporation, Asahi and Kirin.

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Reading Time: 1 minute

Vietnam’s largest beer company Saigon Beer Alcohol Beverage Corp, or Sabeco, has commenced its international roadshow in Singapore on November 24, ahead of the much-anticipated share sales by the Vietnamese government.

Reading Time: 1 minute

Vietnam’s largest beer company Saigon Beer Alcohol Beverage Corp, or Sabeco, has commenced its international roadshow in Singapore on November 24, ahead of the much-anticipated share sales by the Vietnamese government.

The exact amount of shares it will sell will be decided after roadshows in Singapore, London and Ho Chi Minh City in the next few days, a senior government official said, adding that the plan is for Vietnam to unload a “significant portion” of its ownership before year-end. However, there was speculation that the government intends to maintain its stakes over 35 per cent so it can continue to hold the veto rights.

The government currently owns close to 90 per cent of Sabeco. Depending on the level of buyer interest, Vietnam could sell up to 54 per cent of the decades-old company and cease to be its majority owner in what could be a multibillion-dollar deal in the coming weeks. The government stake in Sabeco is estimated to be worth $5.3 billion.

The foreign ownership in Sabeco is capped at 49 per cent. Vietnamese authorities have discussed breaking up the 54-per-cent stake into smaller lots to auction off, but it may also change the sales method or the foreign ownership limit.

Sabeco has been attracting a particularly high level of interest from international investors because of the company’s strong growth potential and the Vietnamese domestic beer market being the largest in Southeast Asia and the fifth-largest in Asia. Vietnamese drink 4.1 billion liters of beer a year, and their thirst for it is rising in tandem with economy growth of nearly seven per cent.

According to Sabeco’s CEO Le Hong Xanh, seven beer companies have registered an interest in buying into the Saigon-based company, namely Anheuser-Busch InBev, Heineken, Carlsberg, Thai Beverage, Singha Corporation, Asahi and Kirin.

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