PV Power starts trading shares on UPCoM
Following the successful initial public offering (IPO) in January, PetroVietnam Power Corporation (PV Power), the second largest state-run electricity producer in Vietnam, started trading its shares on the Unlisted Public Company Market (UPCoM) on March 6.
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A total of 467.8 million shares have been floated on the market at a price of VND14,900 (US$0.66) per share.
According to Nguyen Tuan Anh, a representative from the Hanoi Stock Exchange (HNX), with such a large volume of registered trading shares, PV Power has increased the capitalisation of the UPCoM to VND252 trillion (US$11 billion).
The company’s participation in the market will open new investment channel for its investors, promote management transparency and offer an effective tool for the firm to mobilise capital, he said.
PV Power General Director Nguyen Xuan Hoa said that his company will continue to sell 28.882% of its shares to strategic investors.
The company sold all 468.37 million shares it offered at the initial public offering (IPO) at the Hanoi Stock Exchange on January 31, raising nearly VND7 trillion (US$308 million). The shares, or about 20% of the firm’s chartered capital, with the initial price of VND14,400 (US$0.633), were sold to over 1,900 investors at the average price of VND14,938 per share, with the highest bidding price at VND28,000 and the lowest at VND14,500.
PV Power was founded in 2007 and fully-owned by the Vietnam National Oil and Gas Group (PetroVietnam). It operates eight power companies and electricity plants with a total installed capacity of 4,208.2 MW, capable of supplying about 21 billion kWh per year, or 12% of the country’s total power output.
The corporation earned approximately VND31 trillion (US$1.36 billion) in revenue in 2017. Its pre-tax profit hit over VND2.5 trillion (US$110 million), 83% higher than the yearly target.
