Vietnam’s PV Oil hoping to strike it rich with $92 million share sale in January
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Vietnamese state oil distribution firm PetroVietnam Oil Corp (PV Oil) plans to offer 20 percent of its shares in an initial public offering (IPO) in January that aims to raise at least $92 million, its parent firm said on Friday.
PV Oil will also offer up to an additional 44.72 percent to strategic investors and another 0.18 percent to employees, state oil and gas group PetroVietnam said on its website.
The sale is part of Vietnam’s broader privatization program that seeks to divest from hundreds of state-owned enterprises to improve their performance and to help raise funds for the tight state budget that is struggling to support growth.
The government plans to reduce its stake in PV Oil to 35.1 percent, PetroVietnam said. Nineteen companies have submitted applications to become strategic investors, three quarters of which are foreign, the firm added.
PV Oil is Vietnam’s sole crude oil exporter and among the country’s top oil products retailers with a 22 percent market share, the company said on its website.
PV Oil is one of several state energy firms earmarked for privatization, along with PetroVietnam Power Co and refinery operator Binh Son Refining and Petrochemical Corp (BSR), whose IPO is also targeted for January at the latest.
PV Oil said earlier this year its first half pre-tax profits reached an estimated VND202 billion ($8.89 million), down 6 percent from the same period in 2016, while its revenue rose 43 percent on-year to VND23.4 trillion.
Questions & Answers
Q.When is PV Oil's initial public offering expected to take place?
When is PV Oil's initial public offering expected to take place?
PV Oil plans to offer 20 percent of its shares in an initial public offering in January. This IPO aims to raise at least $92 million for the company.
Q.How many companies have applied to become strategic investors in PV Oil, and what is their origin?
How many companies have applied to become strategic investors in PV Oil, and what is their origin?
Nineteen companies have submitted applications to become strategic investors in PV Oil. Three quarters of these interested firms are foreign, showing international interest in the sale.
Q.How did PV Oil's financial performance compare between the first half of this year and the same period last year?
How did PV Oil's financial performance compare between the first half of this year and the same period last year?
PV Oil's pre-tax profits for the first half of this year were an estimated VND202 billion ($8.89 million), a 6 percent decrease from 2016. However, its revenue increased by 43 percent year-on-year to VND23.4 trillion.
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