PV Oil, a subsidiary of PetroVietnam, said it would double the scale of its initial public offering (IPO) - from 10% to 20%.
The IPO process is expected to complete by the end of this year. The company will sell 44.7% of their stake to strategic investors.
"The negotiation process with potential investors is happening. The list of strategic investors is expected to be announced in November," PV Oil said.
Meanwhile, Bao Viet Securities JSC. has a much higher expectation of PV Oil, which is estimated at VND29,740 (about US$1.31) per share, based on the comparison with Petrolimex.
In June, PV Oil announced the value of VND10.34 trillion (roughly $456 million). Currently, PV Oil is still suffering a loss of VND2 trillion (about US$88.1 million) as a consequence of merging with Petec and the sharp fall in oil prices. PV Oil's revenue in 2016 reached about VND34,000 billion (roughly US$1.5 trillion), and the after-tax profit reached about VND624 billion (US$27.5 million), a dramatic increase over last year.
Currently, there are 29 licensed petroleum enterprises in which PV Oil accounts for 21% of the market share, preceded by Petrolimex (50%).