Three power generation corporations under Vietnam Electricity Group (EVN) will launch their initial public offerings (IPOs) this year to raise capital for power plant projects.

Workers install a power transmission line. Three power generation corporations under Vietnam Electricity Group (EVN) will launch their initial public offerings (IPOs) this year

In the first quarter of this year, EVN Power Generation Corporation 3 (EVNGENCO 3) with total assets of VND111 trillion will launch its IPO on the stock market prior to February 9, followed by Power Generation Corporation 1 (EVNGENCO 1) and Power Generation Corporation 2 (EVNGENCO 2), EVN general director Dang Hoang An said.

An said on Monday the group had approved the equitization plans of  these corporations after the Prime Minister passed a restructuring plan for EVN’s subsidiaries in the 2017-2020 period.

According to a source from EVN, commercial banks have offered more loans for EVN subsidiaries than the limits set by the State Bank of Vietnam (SBV), so it will be difficult to borrow more from banks to fund power plant projects in the coming time.

Meanwhile, investment in the power sector will amount to nearly VND118 trillion (US$5.2 billion) this year to ensure an adequate supply of electricity for both production and household needs this year which may grow 10% over last year.

EVN will organize roadshows in Singapore and Vietnam’s Hanoi and HCMC to complete the equitization of the three power generation corporations this year. EVN has withdrawn 75% of its chartered capital from EVN Finance Joint Stock Company (EVN Finance), fetching VND31 billion.

Thus, the group has obtained nearly VND219 billion from its divestment compared to VND300 billion planned for last year.

EVN will continue divesting 7.5% of its chartered capital from EVN Finance, and reduce its ownership at Dong Anh Electrical Equipment Manufacturing JSC, Thuan Binh Wind Power JSC and Power Engineering Consulting 3 and 4.

According to financial supervisors, more investors are keen on the equitization of power enterprises and want to become strategic investors of such State-owned firms.

After EVN put up for sale 749.12 million shares, or 36% of chartered capital, in EVNGENCO 3 early this month, many investors have expressed interest in EVNGENCO 3’s finance and business performance.

A roadshow in Singapore on January 12 to seek strategic investors for EVNGENCO 3 attracted 19 international investors active in the power sector.

EVN had earlier planned to divest from real estate, banking, insurance and stock enterprises to focus on electricity production and business. The group had successfully divested from EVN Investment and Construction JSC, Saigon Vina Real Estate JSC, Central Power Real Estate JSC, An Binh Securities JSC, An Binh Commercial Joint Stock Bank (ABBank) and Global Insurance Corporation (GIC).

SGT