Vivo Energy, a leading retailer and marketer of Shell-branded fuels and lubricants in Africa, announced its intention to proceed with an initial public offering via the London Stock Exchange and the Johannesburg Stock Exchange. Vivo Energy is wholly owned by oil trading giant Vitol and Africa-focused investment group Helios Investment Partners.
The selling shareholders will include Vitol Africa B.V. No proceeds of the listing will go to the company. JPMorgan, Citigroup and Credit Suisse are leading the listing.
“The company intends to apply for admission of its shares to the premium listing segment of the Official List of the FCA and to trading on the main market for listed securities of the LSE and for admission of its shares to listing and trading as a secondary inward listing on the main board of the JSE,” Vivo Energy announced on its website.
“It is expected that admission will occur in May 2018 and is subject, amongst other factors, to market conditions.”
Vivo Energy operates under the Shell brand in attractive, high growth markets in north, west, east and southern Africa. It was established in December 2011 through the carve-out of Shell’s African downstream business, excluding South Africa and Egypt.
Vivo Energy has retail operations in 15 countries across Africa, with an average 5% GDP (CAGR 2016-21), with access to 277 million consumers in these markets. Africa, which has a young and fast-growing population and a growing middle class, is experiencing rapid urbanization, vehicle growth and increased consumer spending.
The group has more than 1,800 service stations, the majority of which are company-owned, dealer-operated. Vivo Energy holds the number one or two market position in 14 of its 15 retail markets and in 2017 had an overall market share of 23% in its markets.
Recently, Vivo Energy signed a share transaction agreement with Engen which, subject to regulatory approval, will add nine new retail countries and more than 300 service stations to the group’s portfolio.
In the commercial segment, Vivo Energy has a strong and established position in many of its markets.
The company operates an integrated marketing, distribution and retail model. Vivo Energy owns or operationally controls critical supply infrastructure, including approximately 943,000 cubic meters of fuel storage.
The group reported gross cash profits of USD 666 million. It reported adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of USD 376 million in 2017, up from USD 302 million in 2016.