The petrol company on Friday submitted proposals to the Lao Securities Commission Office and the stock exchange on the sale of shares to the public. 

The company’s Chief Executive Officer (CEO), Mr Somvang Khurulat, revealed his plan for capital mobilisation to Vientiane Times on Saturday, saying “We expect to start selling shares in September this year.”

Mr Somvang said the company currently has 155 billion kip in capital and will register 155 million shares but will sell only 20 percent of this number.  

ENECO plans to carry out a roadshow after authorities approve the documents it has submitted. It will organise promotional activities in Champassak province and in Vientiane, and also in the target countries of Japan, China’s Hong Kong, Australia, Singapore, Thailand and Malaysia. 

The main business of ENECO Dynamic Public Company revolves around imports and exports. It also owns the DNM Distributor Sole Company Limited and holds 25 percent of shares in the Dynamic BIO Ethanol Company Limited.

DNM Distributor is a subsidiary company which operates as a domestic fuel supplier. It has been split from the parent company under Prime Minister’s Decree 331 on fuel business improvement.

This decree does not allow a registered oil firm to operate several related businesses, such as imports, wholesale and retail distribution, and transportation. This means fuel companies have to separate their operations.

Now the parent firm only deals with fuel imports, Mr Somvang said.

Dynamic BIO Ethanol Company Limited plans to produce 99.5 percent ethanol to be mixed with gasohol E10, E20 and E85. It has government approval to produce and distribute the product.

The planned industry is located at 45km in Nakham village, Pathoumphon district, Champassak province.

Site preparation is almost 100 percent complete, including the clearance and levelling of land. Construction is expected to begin in October.

Initially, Dynamic BIO will operate a gasohol processing plant that will produce E10 first by importing ethanol to mix with benzene and other substances and will meet the national standard.

“The points of sale will be our gas stations from southern to central parts of the country. We currently have 57 fuel pumps across the country including those set up under our alliances,” Mr Somvang said.

A pilot distribution of E10 is expected to begin in December. After six or 12 months of trial sales, if the business is viable, the public accepts it and both the public and private sectors understand the use of E10, the company will start construction of a production plant.

The firm plans to buy cassava from farmers to produce the 99.5 percent ethanol for mixing with benzene according to the required ratio. Gasohol E10 can be used in all types of vehicles, both new and old.

Thailand has been using this type of fuel for a long time, he said.

Gasohol production protects the environment, reduces fuel imports and encourages the commercial cultivation of cassava. It will help to stabilise the price of the crop and reduce the amount foreign currency spent on fuel imports.

According to ENECO Dynamic Public Company’s capital mobilisation target, it will use all of its capital as turnover for green energy production. The company hopes that the sale of its shares will attract considerable interest among the general public.  According to company policy concerning dividends, it will allocate 70 percent of its net profit to dividends for shareholders, which will be paid once a year. 

ENECO Dynamic Public Company was established in 2015. It will be the 12th firm to list on the Lao Securities Exchange.