Petrosetco plans major capital hike, eyes expansion into infrastructure and real estate

Petrosetco, which operates in distribution, supply chain, catering and real estate services, plans a significant capital hike through a combination of bonus shares, stock dividends and a rights offering, as the company seeks funding to expand into infrastructure and real estate.

Petrosetco, or PetroVietnam General Services Corporation (HoSE: PET), said it intends to issue shares equivalent to 45% of its current capital, including a 5% stock dividend and a 40% bonus share issuance. It also plans a 1:1 rights offering to existing shareholders.

Following the issuance, the company’s charter capital is expected to rise from over VND1.07 trillion ($40.75 million) to more than VND2.6 trillion ($98.72 million).

The bonus and dividend plan includes issuing 4.5 million shares for dividends and 42.7 million shares from equity capital, to be carried out in the second to third quarter after regulatory approval.

Under the rights offering, Petrosetco will issue 106.7 million shares at VND10,000 ($0.38), raising more than VND1 trillion ($37.97 million) to fund investments by the parent company as well as its subsidiaries and affiliates.

Infrastructure push

The company said it requires substantial capital due to the nature of its core businesses, which include distribution of IT and telecommunications equipment, as well as logistics services such as warehouse, factory and office leasing, and real estate development and management - all of which demand high working capital and infrastructure investment.

Petrosetco also plans to expand into construction infrastructure and real estate, further increasing its capital needs.

Part of the proceeds will be used to invest in the Cape Pearl complex project at 12AB Thanh Da street, Binh Quoi ward in Ho Chi Minh City, along with other potential projects and financial restructuring.

In infrastructure, Petrosetco plans to invest in several companies, including Gelex Bac Sai Gon Infrastructure 1 (51% stake), Gelex Bac Sai Gon Infrastructure Investment 2 (41%), and Gelex Tay Thanh Pho Infrastructure (41%), with a total planned investment of around VND2.2 trillion ($83.53 million).

These ventures are partners of Gelex Group and its affiliate Gelex Infra (HoSE: GEL), as well as Viconship Infrastructure and Industrial Real Estate.

Strong 2025 performance

For 2025, Petrosetco reported strong results, exceeding its annual targets. Revenue reached nearly VND21.82 trillion ($828.32 million), up 15% year-on-year and 6% above plan, while net profit rose 59% to VND350 billion ($13.29 milion), surpassing its target by 43%.

The distribution segment remained the main contributor, accounting for 82% of revenue and 47% of profit. Other segments each contributed less than 11%.

Notably, financial income of VND104.7 billion ($3.98 million) was a key driver of profit growth.

For 2026, the company targets revenue of VND23 trillion ($873.35 million), up 5% from 2025. However, it expects net profit to decline to VND318.4 billion ($12.09 million), equivalent to 91% of last year’s level.

Excluding financial income, profit from core operations is still projected to grow, the company said.

On the Ho Chi Minh Stock Exchange (HoSE), PET shares closed Tuesday at VND50,700 ($1.92) apiece.