The Vietnam National Petroleum Group (Petrolimex) is proceeding to sell a maximum of 60 million treasury stocks on the Ho Chi Minh Stock Exchange, the second sale of its kind since its debut in April 2017. (Photo: ndh.vn)Hanoi (VNS/VNA) - The VietnamNational Petroleum Group (Petrolimex) is proceeding to sell a maximum of 60million treasury stocks on the Ho Chi Minh Stock Exchange, the second sale ofits kind since its debut in April 2017.
Treasury stocks, or reacquired stocks, arestocks which are bought back by the issuing company from shareholders, intendedfor resale to the public.
The sales will depend on the conditions anddevelopments on the stock market but will be conducted as soon as possible inthe last quarter of this year after getting the nod from the Ministry ofIndustry and Trade (MoIT) and the State Securities Commission, according tondh.vn.
The MoIT, which represents the Statecapital in the company, is the biggest stakeholder of Petrolimex with anownership of 75.87 percent as of December 31, 2017. JX Nippon Oil & EnergyVietnam Consulting and Holdings Co Ltd holds an 8 percent stake.
In May last year, Petrolimex sold 20million treasury stocks, reaping over 1 trillion VND (44 million USD at thattime) at a transaction value five times higher than par value at an averageprice of 50,553 VND (2.22 USD) per share.
Petrolimex owned more than 135 milliontreasury stocks after the sale.
These stocks were reacquired in September2016 at only 10,600 VND per share.
Petrolimex is Vietnam’s largest importerand distributor of petroleum. In the first half of this year, it postedafter-tax profit of nearly 2.3 trillion VND (roughly 99 million USD), up 14 percentagainst the same period last year.
According to Viet Capital Securities Co, Vietnam’soil refining and distribution is a young and high-potential industry given thecountry’s thirst for refined products.
It is estimated Vietnam’s petroleumconsumption CARG (compound annual growth rate) will be 5 percent over the nextfive years, which is much higher than the global growth rate of 1.3 percent peryear.
Consumption of gasoline and diesel fuel isestimated to grow at a CAGR of 3.5 percent and 4.7 percent, respectively, whilesteady development of the local aviation industry is expected to help demandfor aviation fuel increase by 8.5 percent per year.-VNS/VNA
VNA
