EDL-Gen to open PO subscription this week
EDL-Gen to open PO subscription this week
Investors who want to buy shares in EDL-Gen should get their money ready as the public company will launch the sale of ordinary shares this week.
EDL-Gen, one of the country's major electricity providers, announced last week the newly issued shares would be available for public purchase from July 4 to July 11. The company plans to raise more capital so it can increase its electricity production capacity.
About 140 million shares in EDL-Gen and capital increased shares remaining from the subscription of existing shareholders of the company's Rights Offering will go on sale at 4,800 kip per share at BCEL-KT Securities.
The power company has opened a rights offering of about 217 million shares to existing shareholders on June 26. Investors who hold four shares could buy one new ordinary share at 4,300 kip per share.
EDL-Gen plans to mobilise about 5,600 billion kip (US$700 million) to acquire EDL shares from Independent Power Producer (IPP) projects and projects owned by EDL.
EDL, the state-owned enterprise that holds a 75 percent stake in EDL-Gen, holds a 60 percent stake in the Theun Hinboun Power Company, which operates the Theun Hinboun and Nam Gnuang power plants in Khammuan province.
EDL also holds a 20 percent stake in the Houay Ho Power Company, 10 percent in the Nam Lik 1-2 Power Company and 25 percent in the Nam Ngum 2 Power Company.
EDL is now building the Nam Kan 2 and Houay Lamphanh Gnai hydropower plants, which are expected to be finished in 2014.
Once EDL-Gen completes its takeover of EDL shares in IPP and additional power plants, its electricity capacity will reach about 1000MW.
According to the company's business expansion plan, its generation capacity is expected to increase from the existing installed capacity of 387MW to 757MW at the end of this year and 1,498MW in 2015. The company also plans to mobilise more investment funding to increase electricity production capacity to 2,238MW in 2020.
The Lao government sold 25 percent of its shares in EDL-Gen to foreign and domestic investors, generating more than US$100 million at the end of last year. At present, EDL-Gen owns six hydropower plants in Laos.
EDL-Gen was said to have generated total revenue of about US$110 million in 2011, a significant increase from US$95 million in 2010, thanks to heavy rainfall which boosted electricity generation.
Under the new Power Development Plan, domestic power demand should increase by 18 percent CAGR to 3,488MW in 2020, up 20 percent from the previous estimate. Rising domestic demand, together with the bright regional demand prospects (10 percent CAGR), will enable EDL-Gen to expand its business, according to stockbrokers.
vientiane times
