A Review of the Nigerian Energy Industry

Vitol expects proceeds of up to $2.2bn from Australian Viva Energy IPO

*A sign is pictured in front of Vitol Group trading commodities company building in Geneva October 4, 2011. REUTERS/Denis Balibouse

20 June 2018, Melbourne – The initial public offering of Viva Energy in Australia is expected to generate proceeds of up to A$3 billion ($2.2 billion) for its owners, led by global energy trader Vitol SA, according to float documents released on Wednesday.

The refinery, fuel supply and petrol stations business is expected to list on the Australian Stock Exchange on July 13 with an indicative market capitalisation of around A$5 billion, the prospectus said, in what would be the country’s biggest initial public offering since 2014.
Vitol and its partners expect to hold on to between 40 percent and 50 percent of the total shares in Viva following the offer.

Viva Energy was created when Vitol and its partners bought a refinery at Geelong near Melbourne and petrol stations from Royal Dutch Shell in 2014. It has since spent more than A$1 billion improving the business, including buying Shell’s jet fuel operations.

“We have plans for the continued expansion of our retail network and see opportunities to benefit from growth in key commercial sectors,” Hill said.

The float is being priced at between A$2.50 and A$2.65 a share, or between 13.1 and 13.9 times forecast net profit for the year to June 2019.

By comparison, its closest listed rival, Caltex Australia, is trading on a forward price-to-earnings multiple of 13.2.

Bank of America Merrill Lynch, Deutsche Bank and UBS are running the IPO.

– Reuters
In this article

Join the Conversation

Join the Conversation