Petrolimex (PLX) to Sell 23.3M Treasury Shares to Meet Public Float Rule

Overview

Petrolimex (PLX), Vietnam’s largest petroleum distributor, has approved the sale of its entire 23.3 million treasury shares to meet the public company condition under the Securities Law. The company currently has only 9.419% of voting shares held by non-major shareholders, below the 10% minimum. The sale also aims to improve financial flexibility after a weak Q1/2026 result.

Key Facts

• Petrolimex plans to sell all 23.3 million treasury shares currently held.
• As of March 25, 2026, only 9.419% of voting shares were held by non-major shareholders (43,264 investors), below the 10% legal minimum.
• The company has one year to remedy the public company condition.
• Major shareholders: State (75.87%) and strategic foreign investor ENEOS Corporation (13.08%).
• Q1/2026 net revenue reached VND 98.7 trillion (+45% YoY), but gross profit fell slightly to VND 3.7 trillion.
• Net profit after tax was VND 662 billion (vs. VND 211 billion in Q1/2025), but net profit attributable to parent was negative VND 763 billion (vs. positive VND 133 billion).
• PLX closed at VND 39,150 on June 3, 2026, up 0.77% with volume of 1.38 million shares.

What Happened

Petrolimex’s Board of Directors passed a resolution to sell all 23.3 million treasury shares currently held by the group. The primary objective is to comply with the public company condition under the Securities Law, which requires at least 10% of voting shares to be held by at least 100 non-major shareholders. As of the record date for the 2026 annual general meeting (March 25, 2026), only 9.419% of voting shares were held by such investors, putting the company at risk of losing its public company status.

The sale is also intended to strengthen financial capacity and balance long-term capital sources. The Chairman of the Board is directly tasked with overseeing the transaction. The company has one year from the date of non-compliance to rectify the situation.

Market Context

PLX shares closed at VND 39,150 on June 3, 2026, up 0.77% on moderate volume of 1.38 million shares. The stock has been under pressure due to weak earnings and regulatory concerns. The Q1/2026 results showed a sharp divergence: while consolidated net profit was positive VND 662 billion, the parent company’s attributable profit was deeply negative at VND 763 billion, reflecting losses from subsidiaries or minority interests. The treasury share sale could improve liquidity and free float, potentially attracting more institutional investors.

Strategic Significance

The treasury share sale addresses a critical regulatory requirement that, if unmet, could result in the loss of public company status and delisting from HOSE. By increasing the free float above 10%, Petrolimex ensures continued access to public equity markets and compliance with disclosure obligations. The move also provides additional capital for working capital or debt reduction, which is important given the high cost of goods sold and thin gross margins. The involvement of ENEOS as a strategic partner adds a layer of stability, but the company’s financial performance remains tied to global oil price volatility and domestic demand.

What to Watch

• Timeline and pricing of the treasury share sale (likely via block trade or public auction).
• Q2/2026 earnings report to see if the parent company’s profitability improves.
• Any changes in the shareholder structure, particularly whether the state reduces its stake further.
• Updates on the company’s compliance status with the State Securities Commission.
• Global oil price trends and their impact on Petrolimex’s gross margin.