PV Power acquires $308.2 million from IPO

PV Power's IPO was a great success (Source:NDH)

According to information published on the Hanoi Stock Exchange, 1,928 investors won in the auction, including 94 organisations and 1,834 individuals. After the auction, all the 468.37 million shares on offer were sold at the average selling price of VND14,938 ($0.66) per share, with the highest and lowest selling prices being VND28,000 ($1.23) and VND14,500 ($0.64). After the sale, PV Power’s total capitalisation reached $1.48 billion.

PV Power’s success came as no surprise because the company has been reporting profitable operations with profit and stable, increasing revenue and profit figures. Additionally, the initial price was considered an attractive offer.

After the IPO, PV Power will sell 676 million shares, or 29 per cent of its charter capital, to strategic investors. Strategic investors are required to have reported profit in the last two years, hold no accumulated losses, and keep the acquired shares for at least five years.

Besides, the firm plans to list its shares on Vietnam’s Unlisted Public Company Market (UpCoM) in the first quarter of this year.

PV Power currently operates eight power plants with the total capacity of 4.2GW, including Ca Mau 1-2 and Nhon Trach 1-2, which contributed 64 per cent to PV Power’s total capacity.

The firm has plans to increase its total electricity generation capacity to 5.7GW once Nhon Trach 3 and 4 power plants come into operation in 2021 and 2022, respectively.

In the next five years, PV Power expects to reach the compounded annual growth rate (CAGR) of 13.8 per cent, far higher than the 4.9 per cent in 2013-2016.

Besides, the firm will develop seven more gas thermal power plants with the total capacity of 6,750MW, which are expected to come into operation in 2021-2026.

In addition, PV Power has studied the development of renewable power plants to meet global trends and react to the fact that fossil energy resources are fast becoming exhausted.

PV Power was established in 2007 and was fully-owned by PetroVietnam. Being the second-largest electricity producer in Vietnam, the company operates one coal thermal power plant, three gas thermal power plants, and three hydropower plants. The corporation’s annual production is more than 4,208MW—equal to 10 per cent of the country’s total power output.

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