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Mar 02, 2018 / 21:10

PV OIL to debut on UPCoM in early March

Nguyen Tung

PetroVietnam Oil Corporation (PVOIL) plans to make its debut on the Unlisted Public Company (UPCoM) market with a total of 200 million shares at the price of VND20,200 ($0.89) per share on March 7, according to an announcement from the Hanoi Stock Exchange.

PVOIL is PetroVietnam's next arm to trade on the UPCoM this month after PV Power and Binh Son Refining and Petrochemical (BSR). 
 
PV OIL to debut on UPCoM in early March.
PV OIL to debut on UPCoM in early March.
The Vietnamese government raised VND4.18 trillion (US$184 million) by selling a 20% stake in PVOIL via its IPO in January. The proceeds exceeded the government's target of raising at least US$122 million from the IPO. 

Under the equitization plan, PVOIL will further offer an additional 44.72% stake to strategic investors through a private placement, resulting in a reduction of State ownership to 35.1%. Through this equitization process, PVOil is expected to raise a total of US$400 million.

Eight investors have previously expressed interest in becoming strategic shareholders in the company, with plans to enter the Vietnamese petroleum market. Sovico Holdings of 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. 

After trading 241.5 shares on UPCoM on March 1, BSR's shares continuously increased, reaching a peak of VND31,300 (US$1.38) before decreasing slightly later. At a price of VND30,000 (US$1.32), BSR's shares traded on the UPCoM are valued at VND 7.2 trillion (US$316.8 million). 

Meanwhile, PV Power earlier also announced that it will trade on the UPCoM platform with a total of 467.8 million shares at the price of VND14,900 ($0.6) from March 6. 

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. 

PVOil's consolidated revenue in 2017 was estimated at VND56 trillion (US$2.4 billion), 165% of the annual plan, while the profit of the parent company was VND325 billion (US$14 million), and of other subsidiaries was VND154 billion (US$6.9 million). Additionally, PVOil's consolidated pre-tax profit totaled at VND405 billion (US$17 million), an increase of 125% against the annual plan.​

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