Despite Power Generation Corporation 2 (EVN Genco 2) owning substantial interests in several thermal and hydropower plants, 99.97 per cent of the stake it offered at its initial public offering (IPO) was unmarketable.
|Past attempts foreshadowed that the IPO attempt of EVN Genco 2 would be a flop |
The Ho Chi Minh City Stock Exchange (HSX) has published the results of the auction registration for the stake of EVN Genco 2.
The company offered 580 million shares or 48.9 per cent of its charter capital to investors with the initial price of VND24,520 ($1.06) per share and expected to acquire VND14.225 trillion ($618.5 million) from the sale.
However, only 14 investors registered to join the auction, registering 262,500 shares, including 200,000 shares from a single foreign investor, 10,500 shares by five Vietnamese people, and 52,000 shares by eight domestic investors.
At present, EVN Genco 2 owns a 100 per cent stake in Trung Son Hydropower One Member LLC, which operates Trung Son hydropower plant with the designed capacity of 1 billion kWh per year.
It also owns a series of thermal power companies including Pha Lai, Haiphong, and Thac Mo, among others.
According to its financial statement, the company generated 17.8 million kWh, equaling 97 per cent of its plan for the whole year and 7 per cent of the power coursing through the whole national power grid.
The unmarketable IPOs of EVN Genco had precedent because they own too many member companies and subsidiaries. Buying stakes in the plants one by one will help investors limit risks.
Previously, EVN Genco 3 failed in its IPO in February 2018 when only 2.8 per cent of the offered shares was sold.