The Ho Chi Minh City-based state-run company has set an opening bid price of VND10,000 ($0.63) for the 11,005,600 shares, on par with their face value of VND10,000, for the auction on June 22, the company said in a statement.

The shares represent 43 percent of the company's registered capital of VND255.3 billion ($16 million).

Petrosetco said its initial public offering will take place at the Ho Chi Minh City stock market and the OTC market in Hanoi.

Foreign investors are allowed to own up to 30 percent of a non-listed Vietnamese company, while the foreign ownership ceiling in a listed company is 49 percent.

State-run firms in Vietnam often undergo equitization, or partial privatizations through the sale of shares to employees and outsiders before applying for a listing licence and making a debut on the stock exchange.

Petrosetco has not said when it planned to apply to list its shares.

The company has diverse business related to the oil and gas industry, as well as operating tours, labour export, food processing and warehousing services. It also deals with real estate and produces air-compressor tanks.

Vietnam is the third-largest crude oil producer in Southeast Asia.

Vietnam's stock exchange, the Ho Chi Minh City Securities Trading Center, was launched in 2000. It now has 36 listed companies with a market capitalization of nearly $2 billion.

On Tuesday, Finance Minister Nguyen Sinh Hung told Reuters Vietnam this year plans to double the number of companies listed on the exchange and also plans to double the market value.

Of the 36 stocks on the Ho Chi Minh City exchange, only Petroleum Mechanical Stock Co and Saigon Fuel Co are from the energy sector.

The State Securities Commission has licensed one company, Comeco, to list and also has agreed in principle with the listing by another firm, Pjtaco, both from the energy sector.

Source: Reuters