Newly listed fuel retailer Vivo Energy’s share price
dropped more than 3% on Tuesday morning, despite the company reporting a
3% rise in net income for the three months to end-March.
In its
quarterly update for the period,
the company said it reported 5% growth
in sales volumes and 6% growth in gross cash profit, to $170m, largely
due to retail volume growth after expanding its network.
The company said it expected to meet its full-year target of volume growth of about 5%.
Vivo
Energy listed on the London Stock Exchange and the JSE on May 10,
raising £548m through placement of 332-million shares — or 27.7% of the
company.
The Shell-licensee operates 1,800 service stations in 15
countries, and is acquiring a further 300 stations from Engen, which
would expand its footprint to 24 countries.
This is expected to be concluded by the end of 2018.
The
proposed deal, announced in December, consisted of an offer of shares
and cash, but the company did not provide details on the value of its
offer at the time.
The company said in a separate statement on
Tuesday that it would offer $400m in five-and seven-year notes to, among
other things, pay fees and expenses incurred related to its initial
public offering, and finance its acquisition of Engen’s Mauritius-based
subsidiary.
At 10am on Tuesday, Vivo Energy’s share price had dropped 3.4% to R28.98. It has fallen just over 6% since its listing.
- SA Businessday
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