Vietnam’s second largest petrol dealer PV Oil said its valuation could reach $520 million upon a public listing in the first quarter of 2018.
In June 2017, the company announced a corporate value of $456 millin). PV Oil, a subsidiary of energy titan PetroVietnam, said it will double the initial public offer (IPO) from the earlier planned 10 per cent shares to 20 per cent.
The IPO is slated for completion by the end of this year, and the petroleum retailer will also sell 44.7 per cent of its equity to strategic investors.
“PV Oil is negotiating with potential investors and expects to release the list of strategic investors in November,” it said.,
PV Oil, which is running nearly 490 retail stations nationwide, hopes to ramp up its market share from 22 per cent, the second largest after listed Petrolimex, to 30-35 per cent next year.
Its market share could potentially rise through acquisitions, said Bao Viet Securities. “Meanwhile, the leading player, Petrolimex, will not be able to consolidate through M&A because of the country’s regulations on competition, which prohibits M&A activity that creates an oil and gas firm with more than 50 per cent market share,” the report said.
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