What will Sabeco share prices be?
After news about Sabeco’s listing was released, its share prices soared by twofold to VND130,000 on the OTC market.
Two years ago, a bank in Ho Chi Minh City could not find buyers of its stake in Sabeco that the bank had held when it offered the price of VND75,000 per share.
A representative of an institution which negotiated the deal with the bank did not accept the price, saying that injecting money into Sabeco was risky, because it was unclear when Sabeco would list shares on the bourse. It also did not think Sabeco would change its corporate governance policy, though it had completed the equitization.
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The bank failed to sell its shares. Sabeco’s share price has been increasing rapidly since then which has brought big profits to the shareholder.
According to Thoi Bao Kinh Te Sai Gon, Sabeco’s shares were traded at VND130,000 on November 5, raising the company’s capitalization value to VND83.4 trillion, or US$3.6 billion.
However, analysts agree that Sabeco’s shares will continue to see prices escalating as investors, excited by the news that Sabeco would enter the bourse on December 12, are now hunting for shares.
Meanwhile, big brewers , including Kirin Holdings and Asahi from Japan, Heineken from the Netherlands, Singha and ThaiBev from Thailand, and AB InBev and SABMiller from the US have shown interest in buying Sabeco’s stakes.
Vietnam ranks first in SE Asia, third in Asia and is among the world’s 11 largest beer drinkers, according to Kirin Beer University. Sabeco is leading the market with 40% of the market share.
Nhip Cau Dau Tu quoted its sources as reporting that the reference price for Sabeco’s stakes on the debut day is VND110,000 per share.
Analysts estimate that with the price of VND110,000 per share, the P/E would be 18.7, which is not high compared with other big corporations such as Vinamilk and Vingroup.
A report from BIDV Securities Company (BSC) pointed out that Sabeco’s P/E is still lower than the P/E of Heineken, ThaiBev, Carlsberg, Asahi, San Miguel and Sapporo.
Other financial indexes such as ROE and ROA also showed advantages for Sabeco. The company’s ROA in 2015 was 16.7% and ROE 25.6%, higher than that of Habeco, a brewer in Hanoi which began listing days ago.
As Habeco, which has not been prospering, still saw prices soaring by 100%-200% in some recent trading sessions. Analysts believe that Sabeco prices will increase even more sharply.
