The Hanoitimes - PetroVietnam Power Corp (PV Power), a subsidiary of Vietnam National Oil and Gas Group (PetroVietnam) will not seek strategic investors for its 28.82% stake as initially planned, according to Ho Cong Ky, Chairman of PV Power.
PetroVietnam will retain a 79.94% stake in PV Power, Ky said at the electricity firm's first ever annual general meeting on June 26, following the company's initial public offering (IPO) in January.
Under the government-approved equitization scheme, PetroVietnam was expected retain 51% of PV Power on behalf of the government, while three strategic shareholders would hold 28.82% stakes after equitization.
At the meeting, Ky said PV Power was required to sell shares to strategic investors three months after IPO. However, the firm has not been able to materialize the plan.
"The prime minister has approved PV Power's recent-adjusted capital structure. In case the company needs major shareholders, PV Power will sell the entire stake in a single bulk. The specific plan will be approved by PetroVietnam," Ky noted.
Nevertheless, PetroVietnam still plans to reduce its holding to under 51%, but at the right moment.
The government in January raised US$308 million (VND6.996 trillion) by selling 20% shares of PV Power in the IPO. With total shares offering of 468 million and initial price of VND14,400 (US$0.6) apiece, the proceeds were 4% higher than the government's expectations of at least US$295 million.
Consequently, PV Power was valued at US$1.48 billion, while its charter capital was reported at VND23.4 trillion (US$1.04 billion) after the IPO.
PV Power is the second largest electricity generator in Vietnam in terms of capacity, only behind Vietnam Electricity (EVN) that holds 61% of the market share, it claims.
In the first six months, PV Power reported VND17.37 trillion (US$758.7 million) in revenue and VND1.37 trillion (US$59.84 million) in pre-tax profit, informed the firm on its website. The company also generated 11,776 million kWh during the same period.