Vivo Energy aims for London and Johannesburg floats
Vivo Energy, retailer and marketer of Shell-branded fuels and lubricants in Africa, announced on Tuesday that it plans to list on the London and Johannesburg exchanges in May.
The offer will see Vivo undertake a 100% secondary sell-down of existing shares by existing shareholders, though no proceeds will go to the company, with the company's shares expected to obtain a free float of at least 25% following admission and subject to market conditions and other factors.
Christian Chammas, chief executive of Vivo Energy, said: "Bringing Vivo Energy to the public markets will enable us to further grow the business and strengthen our market leading position across Africa. Vivo Energy has a track record of strong growth and financial performance."
The company currently operates in 15 African countries, and claims access to 277m consumers and a market share of 23%.
In preparation for the float, the company has appointed Britvic PLC’s chairman John Daly as chairman and hired Thembalihle Hixonia Nyasulu and Carol Arrowsmith as independent non-executive directors.
John Daly, chairman elect of Vivo Energy, said: "Vivo Energy has established itself as the leading independent fuel retailer in Africa. The group has a robust corporate governance framework in place and its exposure to Africa means Vivo Energy's growth story is supported by compelling macro drivers. The group has a proven integrated business model with multiple growth levers and many promising opportunities have been identified that Vivo Energy is uniquely placed to capitalise upon."
The company seeks to pay dividends following admission of a minimum of 30% of group net income.
In 2017, the company posted earnings before interest, tax, depreciation, and amortisation of $326.1m, up from $286m in 2016, but did not offer figures for revenue.