Petrolimex (PLX) to Sell All Treasury Shares to Retain Public Company Status

Overview

Petrolimex (PLX) has announced a plan to sell its entire treasury stock of nearly 23.3 million shares, representing 1.8% of charter capital, to comply with public company requirements under Vietnam’s Securities Law. The decision follows a disclosure that minority shareholders hold only 9.4% of voting shares, below the mandatory 10% threshold. The company also reported a net loss of VND 662 billion in Q1/2026, its deepest quarterly loss in over six years.

Key Facts

• PLX plans to sell all 23.3 million treasury shares (1.8% of charter capital) to boost minority shareholder ownership above the 10% legal minimum.
• As of March 25, 2026, PLX had 43,266 shareholders, with 43,264 non-major shareholders holding only 9.4% of voting shares.
• The company has one year from the date of violation to rectify the situation or risk losing public company status.
• Q1/2026 net revenue reached VND 98,700 billion, up 45% year-on-year and the highest in 13 years.
• Net loss for Q1/2026 was VND 662 billion, compared to a net profit of VND 211 billion in Q1/2025, the worst result in 25 quarters.
• The board resolution was issued on June 3, 2026, authorizing the chairman to execute the sale.
• PLX shares closed at VND 39,150 on June 3, 2026, up 0.77% with volume of 1.38 million shares.

What Happened

On June 3, 2026, the Board of Directors of Petrolimex (PLX) approved a resolution to sell all of the company’s treasury shares, totaling nearly 23.3 million shares. The move is intended to address a regulatory shortfall: as of the record date for the 2026 annual general meeting (March 25, 2026), minority shareholders held only 9.4% of voting shares, below the 10% minimum required for a public company under Vietnam’s Securities Law. The company had previously disclosed this violation in a filing on April 10, 2026.

Under the law, PLX has one year to restore compliance. If the ratio is not raised to at least 10%, the company must file for revocation of its public company status with the State Securities Commission. By selling treasury shares to minority investors, PLX aims to increase the free float and meet the threshold. The board has tasked the chairman with overseeing the implementation.

Market Context

PLX shares on HOSE closed at VND 39,150 on June 3, 2026, up 0.77% on volume of 1.38 million shares. The stock has faced pressure from weak earnings: Q1/2026 net loss of VND 662 billion was the worst in 25 quarters, despite record revenue of VND 98,700 billion. The loss was driven by a sharp rise in cost of goods sold, which kept gross profit nearly flat year-on-year at VND 3,700 billion. The treasury share sale, while regulatory-driven, could improve liquidity and free float, potentially attracting more institutional interest.

Strategic Significance

The treasury share sale is primarily a compliance measure, but it also strengthens PLX’s financial flexibility by increasing outstanding shares and reducing treasury stock. For long-term investors, the key concern is the underlying business performance: the Q1 loss signals margin compression in a high-revenue environment, likely due to volatile global oil prices and domestic pricing controls. Successfully retaining public company status avoids delisting risks and maintains access to capital markets. The sale also provides an opportunity for minority investors to increase their stake at current market prices.

What to Watch

• Timeline and pricing of the treasury share sale, including any block trades or public offerings.
• Q2 2026 earnings release to see if the net loss trend reverses or deepens.
• Any further regulatory filings regarding the minority shareholder ratio and compliance progress.
• Changes in global crude oil prices and their impact on PLX’s gross margins.
• Potential dividend policy adjustments given the loss and capital needs.