PV Power to build two electricity plants worth US$1.5 billion
PetroVietnam Power (PV Power), has been granted government approval to build two gas-fired electricity plants in southern Vietnam at a total cost of nearly US$1.5 billion, its parent company said on April 24.
The Prime Minister Nguyen Xuan Phuc has given the go-ahead for the two facilities in the province of Dong Nai, state oil firm PetroVietnam, which holds a 51% stake in PV Power, said in a statement.
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The Government has raised US$308 million (VND6.996 trillion) by selling 20% of 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.
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.
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.
In January, 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.
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