Six foreign investors include Shell, Idemitsu, KPE, Puma (Switzerland), SK (Korea) and an investor from the Middle East. Two local investors are Sovico, owned by billionaire Nguyen Thi Phuong Thao, and one local investment fund.
According to analysts, the reason why Sovico invests strategically in PV Oil is to exploit the potential aviation fuel sector which currently has only two suppliers, namely Petrolimex PA and Skypec of Vietnam Airlines. Vietjet Air which was founded by Thao, also has a great demand for fuel in the development process.
Under the equitisation plan, PV Oil’s charter capital is VND10,342 billion (US$456.1 million), of which 20 per cent will be auctioned through IPO. 44.72 per cent and 0.18 per cent will be sold to strategic shareholders and PV Oil’s employees, respectively. 35.1 per cent will be held by the State (represented by Petrovietnam).
With a reference price of VND13,400 (US$0.59)per share, this IPO will bring to PV Oil an amount of nearly US$400 million. This is the capital source for PV Oil to raise the number of affiliated stores to 1,550 by 2022.
In order to become a strategic investor of PVOil, investors must have the minimum equity of VND2,000 billion (US$88.2 million), profitable business operation in the recent 2 years, no accumulated losses, so on.
Strategic investors must also commit to remaining PV Oil’s main business line and brand name for at least 10 years, holding PV Oil’s shares for at least 19 years, etc.
After equitization, PV Oil plans to increase revenue from non-petroleum activities by developing gas station services such as convenience stores, car maintenance services, and coffee shop.
PVOil currently holds a 22 per cent market share (ranked behind Petrolimex with a 48 per cent market share) in Vietnam with a nationwide distribution network of nearly 540 COCO stations operated directly under the Company and 3,000 DODO managed by its dealers stations.
Unlike Petrolimex (mainly importing gasoline), PV Oil's gasoline source is mainly domestically produced from Dung Quat oil refinery (BSR), with about 1.8 - 2 million cubic meters, equivalent to 55 per cent – 60 per cent sales of the company.
In addition to gasoline distribution, PV Oil also imports and exports crude oil, accounting to 22.7 per cent of its annual profit.