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Global ECM Weekly Monitor Dec 01, 2017 – Saigon Beer Alcohol Beverage, Enterprise Products Partners

Our previous Global ECM Weekly Monitors can be found here.

Saigon Beer Alcohol Beverage Corporation (HOSE:SAB)

  • Announcement Date: November 29, 2017
  • Gross Offering Amount: VND 109,972 billion (USD $4.8 billion)
  • Price per share: VND 320,000
  • Lead Banks: Not Disclosed
  • Nature of the issue: State bailout
  • Security Issued: Common Shares

Saigon Beer Alcohol Beverage Corporation is the largest brewer in Vietnam with revenues over $1.3 billion, serving 40% of the Vietnam beer market. 90% of the company is controlled by the government.

Vietnam’s Ministry of Industry and Trade is offering 343,662,587 shares of Saigon in order to bail out the government. The government will sell up to 50% of their ownership and has set a minimum price of VND 320,000 per share, representing a 3% discount to the last trade.

Saigon is currently publicly listed with a market cap of $8.7 billion. The company’s stock was trading at VND 318,800 at the end of the prior week and closed at VND 330,000 on November 29, 2017.

Vietnam has felt the financial pressure to open up their communist regime to foreign investment in hopes of paying down their outstanding public debt. Foreign investors such as Japan’s Kirin Holdings Co and Thailand’s Thai Beverage PCL have shown an interest in Saigon.

Enterprise Products Partners L.P. (NYSE:EPD)

  • Announcement Date: December 1, 2017
  • Gross Offering Amount: USD $2.5 billion
  • Lead Banks: Citi, BofA Merrill Lynch, Barclays, Credit Suisse, Deutsche Bank, DNB Markets, Jefferies, J.P. Morgan, Mizuho Securities, Morgan Stanley, MUFG Securities, Raymond James, RBC, Scotiabank., SG Americas Securities, SMBC Nikko Securities, SunTrust Robinson Humphrey, TD Securities, USCA Securities, Wells Fargo
  • Nature of the issue: Follow-On Equity Offering
  • Security Issued: Common Units

Enterprise Products Partners (EPD) is a midstream oil and gas company that operates NGL, crude oil, natural gas and refined products pipelines in the USA. The company’s stock is trading at $25.05 (as of December 1, 2017).

EPD is offering underwriters an additional $2.5 billion worth of shares as part of a follow-on equity offering to sell at prevailing market prices.

EPD will use the proceeds for general corporate purposes, capital expenditures and debt repayment. The company currently has 1,000 miles of pipeline and 1 gas processing plant under construction, including the Shin Oak Pipeline that will transport mixed NGL from the Permian Basin.

Related Reading for Equity Capital Markets

Equity Capital Markets Topics

Dividend Policy
Dividend Reinvestment Plans (DRIP)
Block Trades

Related Product Groups for ECM

Equity Research
Investment Banking
Debt Capital Markets – another financing group
Sales & Trading – for equity derivatives to pair with equity issues; equity sales
Corporate Banking
Wealth Management/Investment Advisors
Buy Side/Asset Management

Sara
Sara
Sara Troka is a first year HBA student at Ivey Business School. Sara will be joining a bank in NYC next summer. She was involved in the York Finance Club as VP Marketing and the York University Student Investment Fund as a Junior Analyst. Outside of finance, Sara enjoys photography and fashion. She is an avid traveler who enjoys exploring historic cities and beaches across Europe.
https://www.linkedin.com/in/saratroka/

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