The figure is based on valuation by Ho Chi Minh Securities Company
On a public listing in the first quarter of 2018, Vietnam’s second largest fuel dealer PV Oil said its valuation could reach $520 million, as per the estimation given by Ho Chi Minh Securities Company (HSC).
The company announced a corporate value of VND10.34 trillion ($456 million) in June 2017. A subsidiary of energy titan PetroVietnam, PV Oil, said it will double the initial public offer (IPO) from the earlier planned 10 per cent shares to 20 per cent. The fuel retailer will sell 44.7 per cent of its equity to strategic investors, while the IPO is slated for completion by the end of this year.
PV Oil is negotiating with potential investors and expects to release the list of strategic investors in November. Bao Viet Securities indicates a sizeable difference from HSC calculation, valuing the business at $950 million, with a total number of 970 million PV Oil shares. This gives a much higher expectation for PV Oil’s value, estimating a VND22,250 stock price.
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 a fuel firm with more than 50 per cent market share. Source: Deal Street Asia PWKD02102017