00:32 (GMT +7) - Wednesday 27/05/2020


$308mn raised from PV Power IPO

Released at: 19:19, 01/02/2018

$308mn raised from PV Power IPO

Illustrative image (Photo: news.zing.vn)

January 31 IPO attracted nearly 2,000 investors keen on 20% stake.

by Quang Huy

The government raised nearly VND7 trillion ($308.1 million) from selling 20 per cent of State electricity firm and PetroVietnam unit PetroVietnam Power (PV Power) at its initial public offering (IPO) on January 31.

The proceeds slightly exceeded the government’s target of at least $297 million from the sale, which is part of a plan to equitize hundreds of State-owned enterprises to boost their performance and ease budget pressure.

The 20 per cent stake, equal to more than 468 million shares, attracted nearly 2,000 investors (97 institutional investors and nearly 1,900 individuals), who registered to purchase more than 491.4 million shares.

According to PV Power CEO Mr. Nguyen Xuan Hoa, the average selling price was lower than the expectations of many analysts and brokerage firms, which will help investors make profits and make PV Power shares more attractive to strategic investors in the future, he said.

The government earlier this month raised a combined $429 million from the IPOs of Binh Son Refining and Petrochemicals (BSR) and the PetroVietnam Oil Corp. (PV Oil) earlier this month, which are also units of PetroVietnam.

Vietnam had among the world’s fastest-growing stock markets last year, with the benchmark VN-Index leaping nearly 50 per cent. It has increased around 14 per cent so far this year, despite a technical glitch that shut down the Ho Chi Minh Stock Exchange for two days.

A further 29 per cent of PV Power will be offered to strategic investors, including both foreign and domestic players. Overseas investors bought 12.15 per cent at the IPO, exchange data shows.

PV Power also plans to trade shares on the Unlisted Public Company Market (UPCoM) starting from March 16.

The government also has plans to sell 12 per cent of the State-owned Vietnam Rubber Group (VRG) for a projected minimum of $272 million and 12.8 per cent of electricity generator Power Generation Corporation 3 (Genco 3) for at least $290 million next month.

User comment (0)

Send comment