Ho Chi Minh Stock Exchange (HoSE) on December 17 approved the listing of 2.34 billion shares of PetroVietnam Power (PV Power), a subsidiary of Vietnam National Oil and Gas Group (PetroVietnam).
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PV Power’s charter capital is VND23.41 trillion (US$1 billion), in which PetroVietnam is the largest shareholder with 51% stake.
The government in January raised US$308 million (VND6.996 trillion) by selling 20% shares of PV Power in the initial public offering (IPO). With 468 million shares offered and an 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 from the IPO.
PV Power is the second largest electricity generator in Vietnam in terms of capacity, only behind Vietnam Electricity (EVN), which holds a 61% market share, it claims.
In the first nine months of 2018, PV Power’s net revenue stood at VND24.78 trillion (US$1.06 billion), and after-tax profit of VND1.65 trillion (US$70.91 million).
Vietnam is projected to be one the fastest growing electricity markets in Southeast Asia, as the electricity demand in the next three years is forecast to grow 10% on an annual basis, higher than the regional average of 7.3%, stated the National Power Development Plan 7 for the period of 2016 - 2030.
PV Power, thus, expects to increase its current supply of 12% of the country's total electricity production to 15% by the end of 2026. Under its own assumptions, by that time, PV Power's electricity generation capacity will increase by 160% from 4,208 to 10,958 megawatts, mainly thanks to the construction of thermal power plants.
