Genco 3 will list 267 million shares on the Ho Chi Minh City Stock Exchange (HOSE) at VND24,600 ($1.08), announced the corporation at its roadshow on Thursday. The corporation aims to raise at least VND6.5 trillion ($286 million) from the sale.
Genco 3 aims to raise at least VND6.5 trillion ($286 million) from the IPO.
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Approved by Deputy Prime Minister Vuong Dinh Hue, Genco 3’s privatization plan will maintain current State holdings and issue shares to increase its charter capital.
After the IPO, Genco 3’s charter capital is expected to increase from VND10.56 trillion ($464.6 million) to VND20.8 trillion ($915.2 million), equivalent to over 2.08 billion shares.
State-power group EVN currently owns 51% of Genco 3’s charter capital. It would divest some of its capital to hold less than a controlling interest after 2019, if the company is successful in restructuring its debts and negotiating with lenders.
Genco 3’s revenue in 2017 was estimated at over VND34.6 trillion ($1.52 billion), with profit at VND1.27 trillion ($55.8 million). Its total capacity reached 6,304MW, accounting for 16% of the national electricity system. The total capacity of the 4 Phu My Thermal Power Plants operated by Genco 3 (Phu My 1, Phu My 2.1, Phu My 2.1 Extension, and Phu My 4) is 2,540MW alone.
To become a strategic shareholder, in addition to sufficient financial capabilities, investors must prove their expertise in operating power plants. Meanwhile, interested parties must make a long-term commitment to support Genco 3 after the equitization process, particularly in management, power plant operation, human resources training, and technology transfer.
Before Genco3, PetroVietnam Power (PVPower) also plans to offer 468 million shares for sale at an IPO on January 31. PV Power’s power plants have a total installed capacity of 4.208MW, equivalent to 12% of the national installation capacity. That said, both IPOs are expected to be promising investment opportunities.
The participation of Genco3 in the group of companies launching their IPOs in the first quarter of 2018 has increased the value of the top 5 IPOs (at the initial offered price) to VND25.8 trillion (US$1.1 billion).
