Vivo Energy plans IPO at $3bn value


By Agencies

Vivo Energy Investments BV, which markets and distributes Shell petroleum products in Africa, is planning a public listing in the coming months that could value it at over $3 billion, according to a report in the Wall Street Journal. The company is working with a group of global investment banks as underwriters and is eyeing a listing on the London Stock Exchange, the Journal said, quoting people familiar with the matter. Vivo Energy took over Shell’s business in Africa after the latter exited to focus on upstream operations. In April, Shell completed the sale of its 20 per cent stake in the Amsterdam-based company to Vitol Group for $250 million. Vitol Group, a Dutch firm, has a 60 per cent stake in the venture while Helios Investment Partners – an African private investment firm – owns the remaining stake.

According to the Journal, Vivo is betting that “Africa’s improving economic growth prospects, combined with a rebound in commodity prices and a growing middle class in parts of the continent, will help drive retail and consumer fuel demand.”

Vivo currently operates in 16 African countries, including Uganda where it runs 137 service stations. Early this year, Vivo Energy Uganda quietly took over Super Oil Petroleum Ltd, which had eight service stations in Kampala and Wakiso district. The value of the transaction was not disclosed.

“We want our employees, customers and suppliers to be eager to work with us; we want to be a partner of choice for governments in terms of regulating and developing the industry; we want people to say ‘Vivo Energy is a great company”. 

“When a person says ‘I work at Vivo Energy’, it must resonate. In short, over time, we want to be recognized as Africa’s most respected energy business”, says Christian Chammas, CEO Vivo Energy.

“At Vivo Energy, we want to make a real and lasting difference to the communities in which we operate. We have chosen to focus on three key areas of community investment”, he added.

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