Africa-focused Vivo Energy reveals plans to float in London

A leading Africa-focused petrol station owner will launch a premium listing of its shares on the London Stock Exchange next month in a deal that has previously been valued at $3bn (£2.1bn).

Vivo Energy, one of Africa’s largest retailers, operates around 1,800 Shell-branded petrol stations across 15 African countries.

The firm aims to capitalise on high growth markets across the continent, and between 2012 and 2017 it added more than 500 service stations to its portfolio.

Christian Chammas, Chief executive told City A.M. the firm plans to match that rate of growth over the next five years.

“The listing will give us access to capital if acquisitions come around,” added Johan Depraetere, the company’s chief financial officer.

Vivo, which will also be “anchoring” itself in Africa with a Johannesburg stock market listing next month, was established in 2011 when Shell carved out the majority of its African downstream business.

It is jointly owned by oil trader Vitol and Africa-focused buyout firm Helios Investment Partners.

The firm said now was the time to list in London “given the group’s current scale and level of maturity”.

“Bringing Vivo Energy to the public markets will enable us to further grow the business and strengthen our market leading position across Africa,” Chammas said.

“Vivo Energy has a track record of strong growth and financial performance. We are excited about the opportunities to take the business forward and believe we have all the necessary attributes to succeed as a listed company.”

The firm revealed John Daly, who is currently the chairman of Britvic and also sits on the boards of Ferguson and G4S, will join Vivo as chairman.

Daly said the group has a robust corporate governance framework in place and its exposure to Africa means Vivo Energy’s growth story is supported by compelling macro drivers.

Vivo operates in countries with high growth markets, experiencing rapid urbanisation, vehicle uptake and consumer spending.

Last year, Vivo had adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda) of $376m (£265m), up from $302m in 2016.

In December 2017, the firm revealed a deal to buy Engen to expand the company’s geographical retail footprint to a further nine African countries, adding over 300 service stations. The deal is expected to be completed in the third quarter of this year.