CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Investment / News
PVOil raises US$184 million from IPO
Nguyen Tung 15:25, 2018/01/26
PetroVietnam Oil (PVOil) successfully sold 20% of its charter capital through an initial public offering (IPO) for VND4.1 trillion (US$184 million) in proceeds, according to a company statement on January 25.
As such, the total shares offered to sell numbered 206 million shares with the initial price of VND13,400 (US$0.6). 
 
PVOil raises US$184 million from IPO.
PVOil raises US$184 million from IPO.
The proceeds exceeded the government’s target of raising at least $122 million from the IPO. With a 20-22% market share, PVOIL is the second largest petroleum distributor in the country after Vietnam National Petroleum Group (Petrolimex). The firm operates a network of 540 gas stations nationwide under the company-owned company-operated (COCO) model and 3,000 gas stations under the dealer-owned dealer-operated (DODO) model. 

The demand at the IPO exceeded supply by 2.3 times, as nearly 100 domestic and foreign institutional investors participated in the auction. The company’s shares will start trading on the Unlisted Public Company Market (UPCoM) on the Hanoi Stock Exchange (HNX) three months after the IPO. Through a private placement, PVOil will offer an additional 44.72% shares to strategic investors, resulting in a reduction of the government ownership to 35.1%. Through this equitization process PVOil is expected to raise a total of US$400 million. This will be the much needed financial means for the oil firm to triple the number of its gas station to 1,550 outlets by 2020. 

Specifically, 850 gas stations will be acquired through mergers & acquisitions (M&A) or construction, while the remaining 200 will be under a leasing contract. Along with other activities, PVOil’s investments in 2018-2020 are expected to total at nearly VND 11 trillion (US$495 million). PVOil’s consolidated revenue in 2017 is estimated at VND56 trillion (US$2.4 billion), 165% of the annual plan, while the profit of the parent company is VND325 billion (US$14 million), and of other subsidiaries is VND154 billion (US$6.9 million). Additionally, PVOil’s consolidated pre-tax profit totaled at VND405 billion (US$17 million), an increase of 125% year’s plan.

Previously, eight investors have expressed interest in becoming strategic shareholders in the company to enter the Vietnamese petroleum market. Sovico Holdings of the Vietnamese billionaire Phuong Thao, founder of Vietjet Air, was one of these, with the others being Shell, Idemitsu, Kuwait Petroleum International, Puma, SK, PTT, and Sacom Investment Fund, informed Cao Hoai Duong, PVOil’s CEO, on the sidelines of a roadshow on January 12. 

Last week, the Vietnamese government raised VND5.57 trillion ($245 million) by selling 7.79% of refinery operator Binh Son Refining and Petrochemical.

Next week, the government will sell a 20% stake in another PetroVietnam subsidiary, PV Power. It expects to raise at least $295 million from the IPO.
Comments
Other news
12:17, 2025/02/25
Vietnam eyes top 3 in investment environment in ASEAN next 2 years: Party Chief
A key objective is to trim off at least 30% of administrative procedures and cut both business costs and unofficial fees.
18:03, 2025/02/22
Vietnam attracts South Korean tech investment at SEMICON Korea 2025
The event provided a platform for Vietnam to showcase its semiconductor potential and reaffirm its commitment to developing high-tech industries and strengthening international cooperation.
16:46, 2025/02/20
Swedish group plans US$1 billion investment in Binh Dinh recycling plant
By creating a large number of jobs and promoting a green economy, the initiative is important in establishing Vietnam as a global hub for the circular textile sector.
10:52, 2025/02/13
Samsung plans to invest in AI, semiconductors in Vietnam
Vietnam will continue improving its investment environment and driving strategic breakthroughs in order to usher in a new era of economic development.
17:20, 2025/02/07
Vietnam's data center construction costs among the lowest in Asia Pacific
The country has a lot of potential to become one of the most important data markets in the region.
21:05, 2025/02/03
Bright prospects for FDI inflows into Vietnam in 2025
Market size, growth potential, low labor costs, and stable political and social conditions continue to be Vietnam’s selling points in attracting foreign investors.