PV Power raised US$308 million through IPO
The Vietnamese government has raised US$308 million (VND6.996 trillion) by selling 20% of PetroVietnam Power (PV Power) in an initial public offering (IPO) on the Hanoi Stock Exchange on January 31.
With total shares offering of 468 million shares and initial price of VND14,400 (US$0.6) per share, the proceeds were 4% higher than the government’s expectations of at least $295 million from the IPO.
PV Power is the second largest electricity provider in Vietnam in terms of capacity.
|
Following the successful IPO, PV Power will continue its equitization plan approved by the Prime Minister, including the organization of the first shareholder meeting and listing shares on the Unlisted Public Company Market (UPCoM) in the next 3 months.
PV Power will also further sell 676 million shares or 29% of its charter capital to strategic investors. Strategic investors have to record positive after-tax profit in the two latest consecutive years with no accumulated loss, while they also have to commit not to transfer their acquired shares in the next 5 years. PV Power is working with Vinacapital, BNP Paribas, and Standard Chartered Bank on the process of equitization and on seeking out strategic investors.
Vietnam National Oil and Gas Group (PetroVietnam) will hold 51% of PV Power on behalf of the government after the electricity firm becomes a joint-stock company.
The market capitalization of PV Power at the share price of VND14,400 is estimated at US$1.48 billion while its charter capital is projected at VND23.4 trillion (US$1.04 billion) after the equitization process is completed.
According to estimates by Ho Chi Minh City Securities Corporation (HSC), PV Power’s net sales in 2017 stood at VND31.5 trillion (US$1.38 billion), up 12% year-on-year, while its after-tax profit stood at VND1.9 trillion (US$83.6 million), up 25%.
PV Power is the second largest electricity provider in Vietnam in terms of capacity, only behind Vietnam Electricity (EVN) that holds 61% of the market share.
Meanwhile, Vietnam is one the fastest growing electricity markets in Southeast Asia, with an average growth demand in the next 3 years expected at 10%. PV Power, thus, expects to increase its current supply of 12% of the country’s total electricity produciton to15% by the end of 2026. Under its own assumptions, by that time, PV Power’s electricity generation capacity will increase by 160% from 4,208 to 10,958MW, mainly thanks to the construction of thermal power plants.
Earlier this month, the government raised US$245 million by selling a 7.79% stake in refinery operator Binh Son and another US$184 million by selling 20% of PVOil.
14:43, 2024/11/18
Aircraft manufacturer Embraer seeks comprehensive aviation partnership with Vietnam
The Vietnamese leader urges the aircraft manufacturer to collaborate on technology transfer, airport construction and operation, research, and investment in Vietnam.
21:55, 2024/10/22
Better links with FDI firms to support Hanoi businesses
Hanoi will continue to focus on quality projects, especially with partners such as Japan, the United States, and Europe to boost technology transfer.
15:24, 2024/09/24
Vietnam calls for more US investment in innovation, hi-tech
The Vietnamese leader called on relevant agencies to resolve any challenges faced by investors and enhance the investment climate to encourage greater US investment in Vietnam.
14:13, 2024/09/23
Vietnamese leader urges Boeing to build production facility in Vietnam
Boeing is committed to continuing to support the development of Vietnam's aviation ecosystem, focusing on aviation infrastructure, human resources training, airport construction, and aircraft maintenance facilities.
14:38, 2024/09/17
Foreign capital pouring into Vietnam's real estate market
Experts are optimistic that the 2024 Land Law, once enacted, will help resolve legal bottlenecks and attract more FDI.
16:27, 2024/08/24
Vietnam news in brief - August 24
Read The Hanoi Times to stay up to date on developments in Vietnam.
- Growing number of FDI firms moving to Vietnam
- Vietnam Gov’t committed to facilitating Adani Group’s US$2-billion port project
- Vietnam Railway proposes US$87 million for Hanoi–Dong Dang railway upgrade
- Vietnam’s North-South high-speed railway to be designed for 350km/h
- Vietnamese gov’t urged to address impact of global minimum tax
- Samsung plans drastic investment increase in Vietnam over next three years