Vietnam: Petrolimex shares jump more than 13% on debut

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Visual from Petrolimex website.

Vietnam’s biggest petrol dealer Petrolimex saw 4.8 million shares change hands and its stock price close at VND48,900 ($2.15) apiece as the company debuted on the Ho Chi Minh City Stock Exchange (HOSE) on Friday.

The concluding price was 13.2 per cent higher than the reference price of VND43,200, which Petrolimex had picked earlier.

The Hanoi-based firm had trumpeted that its debut price would be no lower than the price of shares sold to its strategic investor, Japan’s JX Nippon Oil & Energy, which purchased at VND36,000 apiece, according to Sacombank Securities.

The given reference price values Petrolimex at around $2.46 billion, which is among the top 10 companies by market capitalisation. On HOSE website, Petrolimex, represented by the code PLX, is currently the eighth largest stock.

With the trading of 1.29 billion PLX shares, the total number of listed equities on the bourse had reached 405 units.

The local state is holding 75.8 per cent of Petrolimex, while the Japanese investor owns 8 per cent interest (which is required not to sell within five years). Excluding these shares, the company’s free float is only 4.14 per cent. It is planning to supply nearly 1.6 per cent more to the public market through selling treasury shares.

Meanwhile, the government might look to trim its ownership in the firm, while JX Nippon Oil & Energy hopes to strengthen its investment in the company.

Vietnam’s petrol use is expanding 6-8 per cent every year since 2000 and is forecasted to maintain this growth by 2020, and Petrolimex is well positioned with a 50 per cent market share.

However, the company is also facing increasing competition as PV Oil is aiming at enhancing its market share from the current 15 per cent to 35 per cent within the next five years, and foreign energy joint venture Idemitsu Q8 will soon complete the Nghi Son refinery to provide more outputs.

Also read:

Petrolimex’ listing set for April 21, JX Nippon to get more shares

Vietnam’s PV Oil in talks to sell 40% stake as state opens market