Vietnam's PV Oil hoping to strike it rich with $92 million share sale in January

Vietnamese state oil distribution firm PetroVietnam Oil Corp (PV Oil) plans to offer 20 percent of its shares in an initial public offering (IPO) in January that aims to raise at least $92 million, its parent firm said on Friday.

PV Oil will also offer up to an additional 44.72 percent to strategic investors and another 0.18 percent to employees, state oil and gas group PetroVietnam said on its website.

The sale is part of Vietnam’s broader privatization program that seeks to divest from hundreds of state-owned enterprises to improve their performance and to help raise funds for the tight state budget that is struggling to support growth.

The government plans to reduce its stake in PV Oil to 35.1 percent, PetroVietnam said. Nineteen companies have submitted applications to become strategic investors, three quarters of which are foreign, the firm added.

PV Oil is Vietnam’s sole crude oil exporter and among the country’s top oil products retailers with a 22 percent market share, the company said on its website.

PV Oil is one of several state energy firms earmarked for privatization, along with PetroVietnam Power Co and refinery operator Binh Son Refining and Petrochemical Corp (BSR), whose IPO is also targeted for January at the latest.

PV Oil said earlier this year its first half pre-tax profits reached an estimated VND202 billion ($8.89 million), down 6 percent from the same period in 2016, while its revenue rose 43 percent on-year to VND23.4 trillion.