Petrolimex’s foreign ownership cap at 20%

The State Securities Commission (SSC) has endorsed the ceiling foreign ownership level at the Viet Nam National Petroleum Group (Petrolimex) at 20 per cent as approved by Prime Minister Nguyen Xuan Phuc last year. — Photo cafef.vn

The SSC’s document, issued on Tuesday, came just three days ahead of the company’s debut on the HCM Stock Exchange.

Petrolimex will list more than 1.29 billion shares worth a total of VND12.94 trillion (US$567.5 million) on Friday under the sticker PLX.

The reference price on the first trading date is VND43,200 ($1.9) a share and is allowed to rise/decline by a maximum of 20 per cent.

At this price, Petrolimex’s market cap is estimated at around $2.45 billion after debuting, making it the fifth largest listed company on the HCM Stock Exchange.

Two stakeholders hold 83.87 per cent of Petrolimex’s capital, of which the Ministry of Industry and Trade has 75.87 per cent and JX Nippon Oil & Energy Co Ltd, a member of the Japanese energy group JX Holdings, owns eight per cent.

On its prospectus on Monday, Petrolimex reported its foreign ownership at roughly 8.18 per cent, which means foreign investors can buy 11.82 per cent of the energy company’s capital after listing.

In a shareholders’ meeting in March, Petrolimex’s chairman Bui Ngoc Bao said the Japanese firm would be the only strategic investor in Petrolimex and it might upstake its ownership to 20-25 per cent.

In Late 215, JX Nippon Oil & Energy spent VND39,017 per share to purchase 13.5 million shares issued by Petrolimex worth a total VND4 trillion. This investment is considered profitable for the Japanese company as its purchase price is lower than Petrolimex’s reference price of VND43,200 apiece this Friday.

Petrolimex is the biggest petroleum dealer in Viet Nam, occupying 48-50 per cent of the market. The petroleum business unit contributes 50 per cent of the group’s earnings.

It posted total revenues of over VND123.1 trillion and pre-tax profits of VND6.3 trillion in 2016, the highest since its establishment.

The company has proposed to the Ministry of Industry and Trade the 2016 dividend rate of 32.24 per cent, equivalent to total payment of over VND3.7 trillion, or 80 per cent of its 2016 net profit.

The petrol dealer has targeted total sales of VND143.2 trillion and pre-tax profits of nearly VND4.7 trillion in 2017, up 16.3 per cent and 17 per cent year-on-year, respectively.

It will hold an annual shareholders’ meeting on April 21. – VNS