After Petrovietnam divestment, Petrosetco reveals major ambitions, prepares to welcome strategic investors

Following the divestment by state-owned giant Petrovietnam, Petrosetco is preparing for its biggest moves in years: increasing charter capital to over VND2.6 trillion ($98.71 million), investing in real estate, and entering water infrastructure projects.

After the founding shareholder, Petrovietnam, sold its entire stake, a new chapter is opening for Petrovietnam General Services Corporation (Petrosetco), listed on the Ho Chi Minh Stock Exchange (HoSE) as PET. Its 2026 AGM, scheduled for April 24 in Ho Chi Minh City, is not just a routine event but also marks the company’s first milestone in the post-state-divestment phase.

At the end of December last year, Petrovietnam successfully sold all 24.9 million PET shares, equivalent to 23.21% of charter capital, through an auction with a starting price of VND36,500 ($1.39) per share and participation from six domestic individual investors. The deal brought Petrovietnam approximately VND900 billion ($34.17 million), officially ending its long-standing role as a shareholder in Petrosetco.

“Regarding prospects after divestment, this is an appropriate time to reform mechanisms, expand business areas, and welcome strategic investors. In the near future, Petrosetco aims not only to strengthen its current core pillars but also to expand into new sectors,” according to a board report released last Friday.

Although no private placement plan - typically an effective channel to attract strategic investors - has been yet announced, the board will present three capital increase options at the upcoming meeting: stock dividend issuance, bonus share issuance, and a rights offering to existing shareholders.

Specifically, the company plans to issue 5.336 million shares (5%) as a 2025 dividend and 42.668 million shares (40%) from equity as bonus shares. These are expected to be implemented in Q2-Q3, raising charter capital to over VND1.55 trillion ($59 million).

Petrosetco also plans to offer 106.7 million shares to existing shareholders, equivalent to 100% of floating shares, at VND10,000 ($0.38) per share. If completed, the company could raise nearly VND1.07 trillion ($40.51 million), increasing charter capital to over VND2.6 trillion ($98.71 million).

Since operating as a joint-stock company in 2006, Petrosetco has undergone 12 capital increases, with only one rights offering in 2007 (from VND229.5 billion to VND483 billion or $18.34 million), while the rest mainly involved ESOP (Employee Stock Ownership Plan) issuance and stock dividends.

Currently, its charter capital stands at over VND1.07 trillion ($40.74 million), accounting for less than 8% of total assets as of December 31, 2025. If all three plans are approved and successfully implemented, this will be the largest capital hike in the company’s history.

Real estate and water infrastructure - New strategic directions

According to the proposal for the additional share offering, Petrosetco’s leadership stated that its expanding operations amid increasing competition require substantial capital for imports, inventory, distribution expansion, warehouse investment, and real estate project development. The company is also targeting expansion into construction infrastructure and real estate - both capital-intensive sectors.

With its current charter capital, Petrosetco believes its internal resources are insufficient for upcoming development needs, making capital increase essential to strengthen financial capacity and create growth momentum.

Regarding the use of funds, the firm said the proceeds will be used for financial restructuring and implementing projects of the company and its subsidiaries or affiliates through capital contributions. These include, but are not limited to, the Cape Pearl Complex project at 12AB Thanh Da street, Binh Quoi ward, Ho Chi Minh City.

The Cape Pearl project spans nearly 20,000 square meters, located along the Saigon River at the intersection with Thanh Da canal. Developed by Petrosetco, it is planned as a high-end complex featuring apartments, villas, and a commercial center.

In 2010, Petrosetco partnered with S.S.G Group to leverage the partner’s strengths to accelerate the project. However, after more than a decade, due to difficulties facing the partner, construction has yet to begin. Petrosetco terminated the partnership in March 2021 and is now seeking to either proceed independently or select a new partner to speed up progress.

In addition to real estate, the company plans to propose investments in three infrastructure companies: Gelex Bac Sai Gon 1 Infrastructure Co., Ltd. (51% stake), Gelex Bac Sai Gon 2 Infrastructure Investment Co., Ltd. (41%), and Gelex Tay Thanh Pho Infrastructure Co., Ltd. (41%).

The total planned investment is VND2.2 trillion ($83.53 million). Shareholders are expected to authorize the board of directors to make detailed decisions and execute investment transactions, including determining investment value and scope, and capital contribution ratios, and selecting partners.

These three companies were established in early March 2026 with participation from Petrosetco, Gelex Infrastructure JSC - a subsidiary of Gelex Group, and Viconship Industrial Infrastructure and Real Estate Co., Ltd. Their main business activities focus on water supply and drainage construction, particularly waste collection and treatment systems.

Earlier, at Gelex Group’s 2026 AGM last Wednesday, CEO Nguyen Van Tuan stated that the group’s strategy is to develop key infrastructure projects, including clean water and wastewater treatment. Gelex is cooperating with Petrosetco in HCMC to prepare investments in three wastewater treatment projects, while also exploring additional infrastructure opportunities under BT (build-transfer) and other partnership models, ensuring balanced benefits among stakeholders.

Joint ventures between Petrosetco and Gelex are in the process of securing loans from a major state-owned bank, with total financing demand reaching tens of trillions of VND (VND10 trillion = $379.67 million).

On the HoSE, PET closed Monday at VND48,000 ($1.82) per share.