Further share offering by EDL-Gen detailed
EDL-Generation Public Company (EDL-GEN) plans to issue more shares to the public as a means to raise capital for business expansion.
The new offering amounts to almost 465 million shares, of which 409 million will be in the form of a rights offering to existing shareholders with 56 million going on offer to the general public. The par value of each share is 4,000 kip.
The sales price for the shares will be announced by Lanexang Securities Public Company later.
The company, in cooperation with Lanexang Securities, last week gave out information on itself at a meeting in Vientiane attended by Bank of the Lao PDR Deputy Governor Mr Sonexay Sithphaxay, along with representatives from banks, companies and shareholders.
The main aims of the new sale of shares are to provide capital to buy a hydropower plant from Electricite du Laos (EDL) and to buy shares in the hydropower plant's independent power producers.
The capital will also be used to build another hydropower plant as well as provide additional revolving capital.
EDL-Gen was established in December 2010 with registered capital of 2.6 trillion kip, according to the company.
EDL transferred the electricity production part of the company to EDL-Gen, consisting of hydropower plants Nam Ngum 1, Nam Mang 3, Nam Leuk, Xe Set 1, Xe Set 2, Xe Labam and Nam Song.
The total installed power is 387MW and each year they can generate electricity to an average of 1,923.5 million kWh.
On January 6, 2011, a meeting of shareholders agreed to increase the company's capital by 3.47 trillion kip through an initial public offering of its shares. On January 11, 2011, the company became the first public company in Laos with registered funding through the Lao Securities Exchange of 3.47 trillion kip.
On July 18, 2012, EDL-Gen further increased its capital by about 4.8 trillion kip by selling its shares through a rights issue and a public offering.
In the second quarter of 2012, the company invested in four projects by independent power producers, Nam Ngum 2, Nam Lek 1 and 2, Theun Hinboun and Houy Ho.
On December 12, 2014, the company raised an additional 6.5 billion baht (1.6 trillion kip) through the sale of debentures in Thailand to create funding to invest in nine projects, four of which are owned by EDL and five are owned by independent power producers.