Hanoi (VNA) - PetroVietnam OilCorporation (PV Oil) may double the amount of shares offered as part of itsinitial public offering (IPO), which is scheduled in the fourth quarter of thisyear.

APV Oil representative told the HCM City Securities Corporation (HSC) at a recentmeeting that the company will offer 20 percent of its total shares for sale atthe IPO, or 210 million shares.

That number is twice the initial planned rate of 10 percent, or 105 millionshares. The company also plans to sell 44.7 percent of its stake to severalstrategic investors.

The IPO and strategic stake sale will reduce the Government’s ownership in PVOil to 35.1 percent. The company is in talks with potential partners and thelist of strategic shareholders is expected to be completed by November.

PV Oil is a member of the Vietnam Oil and Gas Group (PetroVietnam or PVN),which is an entirely State-owned enterprise. The company has a monopoly ofcrude exports and is the second largest petroleum dealer after Petrolimex inVietnam.

According to HSC, PV Oil is seeking to raise its market share in the localmarket to 30-35 percent in the next three to five years from the current 22percent by increasing the number of gas stations.

The company expects its combined profit margin will rise to 6-6.5 percent inthe targeted period by increasing its productivity and having advantages overcompetitors due to its large-scale business.

PV Oil has more room to grow thanks to the fast-increasing number of cars andother vehicles, leading to high demand for gas and oil products, HSC said,adding that market demand growth could reach 3.5-4 percent per year.

HSC estimated PV Oil’s revenue in the first six months was 28.3 trillion VND (1.25billion USD), a yearly increase of 74 percent, or equal to 82 percent of theyearly plan, while pre-tax profit rose eight percent year-on-year to 231billion VND, or 71 percent of the yearly plan.

For 2017, HSC forecast PV Oil could earn 48 trillion VND in revenue, an annualincrease of 22 percent, and 650 billion VND in pre-tax profit, a yearlyincrease of 3.6 percent.

Shares of PV Oil could be listed in the first quarter of 2018 at the marketcapitalisation of 12 trillion VND, or 520 million USD, HSC forecast. - VNA