Hanoi (VNA) - Eightinvestors have registered to become strategic shareholders of the Vietnam OilCorporation (PV Oil) as of January 10, PV Oil CEO Cao Hoai Duong confirmed onthe sidelines of the corporation’s roadshow.

Among the eight investorsexpressing interest in buying PVOil stakes are six foreign companies and twodomestic. All six foreign investors are famous international oil companies, Duongsaid on January 12.

“We have received an applicationfrom a foreign investor who expressed a wish to buy 49 percent of the PV Oilshares, the cap set for foreign investors.”

Because other foreign investorswant to buy a stake between 25 and 35 percent, the total shares investors haveregistered to buy has exceeded the number of shares that PV Oil is allowed tosell, the CEO added.

PV Oil, a subsidiary of theVietnam National Oil and Gas Group (PetroVietnam) and the country’s sole crudeoil exporter, plans to offer 20 percent of its shares in an initial publicoffering (IPO) on January 25 on the HCM Stock Exchange, at an initial price of 13,400VND per share. 

With nearly 207 million sharesoffered in the IPO, the company hopes to raise at least 122 million USD.

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PV Oil would also offer up to anadditional 44.72 percent or 462 million shares to strategic investors andanother 0.18 percent to employees. The Government’s ownership is expected to bereduced to 35.1 percent after the equitisation is completed.

Foreign ownership of PV Oil iscapped at 49 percent of its charter capital.

According to Duong, investorsseeking to become strategic investors at PV Oil must commit to long-terminvestment in PV Oil by keeping their stock for at least 10 years.

In addition, strategic investorshave to commit to prioritise buying petroleum products from Dung Quat Refineryand realise commitments in terms of market, technology and management development.Foreign investors are also required to deposit an amount of money equivalent to20 percent of the stake they register before entering the auction.

Every potential strategicinvestor must submit to PV Oil a proposal to develop the company if it becomesa strategic investor, Duong said.

Specifically, the company expectsthat foreign oil and gas corporations will help develop the non-petroleumsector such as convenience stores, fast food stores, car wash services andgarages along with the network of 540 PV Oil petrol stations.

“In fact, in other countries, thenon-petroleum service is profitable, equivalent to petroleum trading serviceand has the ability to create good cash flow,” Duong said.

Therefore, PV Oil expects foreignstrategic investors with extensive experience and financial and managerialcapabilities to effectively support the company’s development of thesenon-petroleum services.

“In the context of Vietnam’sincreasing integration with the international market, we hope that foreign partnerswill help us to effectively import and export products, minimise risk when themarket prices fall and take advantage of opportunities when the market pricesincrease,” the CEO stressed.-VNA