PV Power hopes to find strategic investors by the end of August
PV Power, a wholly-owned subsidiary of state-owned PetroVietnam and the second largest electricity producer in Vietnam after Electricity of Vietnam (EVN) in terms of capacity, hopes to finish its share sale to strategic investors by the end of August.
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PV Power has approached potential investors, such as Vinacapital, BNP Paribas, Standard Chartered, and Deloitte as well as funds in Vietnam, such as Indochina Capital, Dragon Capital, SGI Cap, Kingsmead, and big investors in the region, such as Sembcorp, Keppel Infrastructure, GIC, and Nexif, in order to learn about their needs and build a negotiation plan.
At the moment, the company is searching for strategic investors and it hopes to finish the process before the IPO.
The Wall Street Journal earlier reported that the Vietnamese government hopes to reduce its holding in PV Power to under 50%.
The share sale is expected to earn the company US$700 million and the proceeds will be used to invest in other energy projects.
PV Power, established in 2007, is currently 100 per cent owned by PetroVietnam. The company produces and sells electricity, as well as repairs and maintains power plants, provides equipment and spare parts, imports and sells coal to power plants, and develops power projects.
PV Power has a chartered capital of VND21.774 trillion ($960 million). Currently, it is operating eight power plants, including four gas-fired power plants, three hydropower plants, and one coal-fired thermal power plant, with the total designed capacity of 4,208.2 MW.
The company’s equitization aims to attract capital from domestic and foreign investors to improve its financial capacity, apply new technology, as well as improve governance to boost efficiency and competitiveness.
In 2016, the company earned a revenue of VND26.522 trillion ($1.17 billion) and a net profit of VND1.595 trillion ($70.2 million), and submitted VND1.126 trillion ($49.6 million) to the state budget. In 2017, the company targets a revenue of VND29 trillion ($1.28 billion), a net profit of VND1.235 trillion ($54.4 million), and VND1.105 trillion ($48.7 million) of tax.
The company aimed to carry out its IPO in October last year and to start operating as a joint-stock company in December, but the plan failed.
