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Home / Investment / Opportunities
Strategic investors vying for EVNGenco 3’s strategic stake
Ngoc Thuy 12:28, 2018/01/16
Vietnam Electricity (EVN) has received official requests from foreign investors to purchase the maximum allowed 36% stakes of EVNGenco 3, stated in its official website.
Power Generation Corporation 3, (EVNGenco3) Vietnam’s current largest electricity supplier, is a subsidiary of EVN. The company plans to sell 749.12 million shares, or 36% of its chartered capital to strategic investors.  
 
Mong Duong Thermal Power Plant.
Mong Duong Thermal Power Plant.
An Initial Public Offering (IPO) for EVNGenco 3 will be launched within the next 3 months for an amount of 267 millon shares, equivalent to 12.8% of its chartered capital at Ho Chi Minh Stock Exchange. With an initial price of VND24,600 (US$1) per share, EVNGenco 3 is expected to raise VND6.5 trillion (US$286 million) in return.

EVNGenco3’s chartered capital is determined at VND20.8 trillion (US$917 million), in which the government ownership through EVN is estimated at 51% of chartered capital, or over 1 million shares.   

The total installed capacity of EVNGenco3’s power plants to be 6.304MW, accounting for 16.9% of installed capacity of the national installation capacity. The total capacity of 4 Phu My Thermal Power Plants operated by EVNGenco3 (Phu My 1, Phu My 2.1, Phu My 2.1 Extension and Phu My 4) alone is 2.540MW. 

EVN held a roadshow for potential investors at its headquarter in Hanoi on January 9, for which 7 investors attended and expressed interest in becoming strategic shareholder for EVNGenco3. 

Among them, 5 investors have signed the Non Disclosure Agreement (NDA) with EVNGenco3 before getting permission to access its data room, as well as detailed information with regard to the current business and financial situation of EVNGenco3. 

A delegation of EVN in collaboration with KPMG held a roadshow in Singapore to promote the image of EVNGenco3 and opportunities for invesment to international investors. The event has attracted 19 global leading companies in energy field in region and around the world, including Ratchaburi, Nebras Power, GS Energy Corporation, Siemens AG, GE Capital, Itochu, China Datang Power, Keppel Infrastructure, Osaka Gas, as well as financial institutions and credible law companies (Mizuho, Hogan Novells).

To become strategic shareholder, in addition to sufficient financial capabilities, investor must prove its expertise in operating power plant. Meanwhile, interested parties must commit in long term support for EVNGenco 3 after completing the equitization process in management; operating power plant; training human resources; and transferring technologies. 

Before EVNGenco3, PetroVietnam Power (PVPower) also plans to offer 468 million shares of its chartered capital in an IPO on January 31. PV Power has total installed capacity of its power plants at 4.208MW, equivalent to the national installation capacity of 12%. 

That said, both IPOs are expected to make Vietnam’s electricity market to be a promising investment opportunities for investors. The participation of EVNGenco3 in group of companies launching IPO in Quarter I 2018 has taken the value of top 5 IPOs to an initial value of VND25.8 trillion (US$1.1 billion).
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