Vitol to float Viva Energy stake in $2.3 billion IPO

Global energy trader Vitol and its partners plan to float their Australian Viva Energy business, potentially worth nearly A$5 billion ($3.8 billion), in July, three people familiar with the transaction said on Tuesday. The owners want to sell up to 60 percent of the refinery, fuel supply and petrol stations business, in what would be Australia's biggest initial public offering since the government's float of Medibank Private in 2014.
They expect to fetch up to A$3 billion ($2.3 billion) from the sale, based on an earnings multiple in line with rival Caltex Australia Ltd on earnings before interest, tax, depreciation and amortisation (EBITDA) of A$650 million.
Caltex's enterprise value is around 7.3 times forecast EBITDA, according to Thomson Reuters data.