Foreign investors crowd EVN Genco 3 IPO
Foreign investors crowd EVN Genco 3 IPO
Numerous foreign investors registered to buy the 36 per cent stake put on offer to a strategic investor in Power Generation Corporation 3 (EVN Genco 3) of Electricity of Vietnam (EVN).
According to EVN, as of January 15, the final date to submit applications for the auction, EVN received numerous applications to buy the whole 36 per cent stake of EVN Genco 3.
After the meeting between the leaders of EVN and representatives of seven foreign investors at the EVN office on January 9, the group organised a roadshow in Singapore on January 12 to introduce investment opportunities in EVN Genco 3. The event attracted the participation of 19 foreign investors, many of whom are large-scale groups in Asia as well as around the world, such as GS Energy Corporation, Siemens AG, GE Capital, among others.
The investors raised numerous questions related to the divestment schedule, the deposit volume, the selling price of the stake offered to strategic investors, and the plans to develop EVN Genco 3 after the equitisation.
Dinh Quang Tri, deputy general director of EVN, and Dinh Quoc Lam, general director of EVN Genco 3, answered all investors’ questions.
After the roadshow, a number of foreign investors expressed desire to become strategic investors of EVN Genco 3.
According to the equitisation plan approved by Deputy Prime Minister Vuong Dinh Hue, EVN will put 267 million shares, or 12.8 per cent of EVN Genco 3’s charter capital, on sale at the IPO at the initial price of VND24,600 ($1.08) apiece.
The auction is expected to be organised on February 9. EVN expects to acquire VND6.59 trillion ($290.1 million) in proceeds.
After completing the IPO, EVN will offer 749.1 million shares, equalling 36 per cent of its charter capital, to strategic investors. Interested firms and individuals will have to show proof of solid financial potential and management capacity as well as good relations with large-scale foreign firms. Besides, they have to affirm to accompany Genco 3 for a long time and support the company to develop after the equitisation.
According to plan, EVN will hold 51 per cent of Genco 3 until the end of 2019. From 2020 onwards, EVN will consider decreasing its holdings in Genco 3 to below 50 per cent.
