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.

PetroVietnam Power Corporation (PV Power), the second largest state-run electricity producer in Vietnam, starts to list its shares on the Unlisted Public Company Market (UPCoM) on March 6.

A total of 467.8 million shares have been floated on the market at a price of 14,900 VND (0.66 USD) 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 252 trillion VND (11 billion USD).

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 percent 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 7 trillion VND (308 million USD). The shares, or about 20 percent of the firm’s chartered capital, with the initial price of 14,400 VND (0.633 USD), were sold to over 1,900 investors at the average price of 14,938 VND per share, with the highest bidding price at 28,000 VND and the lowest at 14,500 VND. 

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 percent of the country’s total power output.

The corporation earned approximately 31 trillion VND (1.36 billion USD) in revenue in 2017. Its pre-tax profit hit over 2.5 trillion VND (110 million USD), 83 percent higher than the yearly target.-VNA