Vietnam - Third time's the charm: PV Power announces December IPO

Vietnam - Third time's the charm: PV Power announces December IPO

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 complete its equitisation in December
this year, after having missed the deadline numerous times, according to
information published on the company's website.

In early June, the company published on its website that it is expected to
conduct its initial public offering (IPO) at the end of August. Previously,
PV Power submitted its equitisation plan approved by the Ministry of
Industry and Trade to the prime minister for approval. The plan was approved
at the end of June 2017.

Previously, in June 2016, PV Power planned to sell a 25 per cent stake at
its IPO in October 2016. However, the IPO was not conducted at the time.

For the third time, PV Power has changed the state stake volume to be
divested to 29 per cent for strategic investors. At the IPO it is planning
to sell 20 per cent, 5 per cent less than the previous plan.

PV Power has approached a number of potential investors, such as
VinaCapital, BNP Paribas, Standard Chartered, and Deloitte, as well as funds
operating 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 measure up demand and build
negotiation plans.

The company is searching for strategic investors and it hopes to finish the
process before the IPO.

According to its plan, within five years of its equitisation, PV Power set
the target to supply 200 billion kWh for the national power grid and earn an
annual revenue of VND40 trillion. Besides, the company will invest into Nhon
Trach 3 and 4 thermal power plants as well as take over projects from
PetroVietnam.

Established in 2007, PV Power 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.

Currently, PV Power is operating nine power plants, including four gas-fired
power plants, three hydropower plants, and one coal-fired thermal power
plant, with the total designed capacity of 4,208.2MW.

The company's equitisation 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.

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Link to Original Article:
http://english.vietnamnet.vn/fms/business/183660/third-time-s-the-charm--pv-
power-announces-december-ipo.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com