Vietnam power utility unit to go public
In this article (5)
A $2-billion power generation unit of state-owned utility Vietnam Electricity (EVN) will have an initial public offering on the country’s main bourse next month.
The Power Generation Corporation 2 (EVNGENCO 2), based in the southern city of Can Tho, will issue nearly 580 million shares on the Ho Chi Minh City Stock Exchange, or nearly 49 percent of its charter capital, on February 8.
The offering will have a reference price of VND24,520 ($1.05) per share.
Tran Phu Thai, chairman of EVNGENCO 2, said at a forum Thursday that the company, wholly-owned by EVN, was valued at around VND46.1 trillion ($2 billion) as of January 1, 2019. No updated valuation was available at the time of publishing.
The company, which has been operating for seven years, had an installed capacity of 4,421 megawatts by the end of last year, accounting for 15.1 percent of EVN’s output.
It is also developing 59 megawatts of renewable energy.
Over half of its non-renewable energy capacity comes from coal-fired plants, 30 percent from hydropower plants, and the rest from oil-fired plants.
Last year, its profits exceeded the annual target by 59 percent at nearly VND3.93 trillion.
The IPO is part of EVN’s effort to equitize its subsidiaries. It had earlier completed the equitization of EVNGENCO 3 and is in the process of equitizing EVNGENCO.
Questions & Answers
Q.What proportion of its capital will EVNGENCO 2 offer during the initial public offering?
What proportion of its capital will EVNGENCO 2 offer during the initial public offering?
EVNGENCO 2 will issue nearly 580 million shares, which constitutes almost 49 percent of its total charter capital. The shares will be offered on the Ho Chi Minh City Stock Exchange.
Q.When is the initial public offering scheduled to take place?
When is the initial public offering scheduled to take place?
The initial public offering for EVNGENCO 2 is scheduled for February 8 next month. The company will be listed on the Ho Chi Minh City Stock Exchange.
Q.What types of power plants contribute to EVNGENCO 2's energy capacity?
What types of power plants contribute to EVNGENCO 2's energy capacity?
Over half of EVNGENCO 2's non-renewable capacity comes from coal-fired plants, with 30 percent from hydropower plants. The remaining non-renewable energy capacity is generated by oil-fired plants.
Q.What was the company's profit performance last year?
What was the company's profit performance last year?
Last year, EVNGENCO 2's profits surpassed its annual target by 59 percent, reaching nearly VND3.93 trillion. This indicates a strong financial performance for the power generation unit.
Reader pulse
Is this IPO a good retail investment?
22,738 votes so far