Vietnam power utility unit to go public

A $2-billion power generation unit of state-owned utility Vietnam Electricity (EVN) will have an initial public offering on the country’s main bourse next month.

Workers of Vietnam Electricity fix cables in Binh Duong, southern Vietnam. Photo by VnExpress/Thanh Nguyen.

The Power Generation Corporation 2 (EVNGENCO 2), based in the southern city of Can Tho, will issue nearly 580 million shares on the Ho Chi Minh City Stock Exchange, or nearly 49 percent of its charter capital, on February 8.

The offering will have a reference price of VND24,520 ($1.05) per share.

Tran Phu Thai, chairman of EVNGENCO 2, said at a forum Thursday that the company, wholly-owned by EVN, was valued at around VND46.1 trillion ($2 billion) as of January 1, 2019. No updated valuation was available at the time of publishing.

The company, which has been operating for seven years, had an installed capacity of 4,421 megawatt by the end of last year, accounting for 15.1 percent of EVN’s output.

It is also developing 59 megawatt of renewable energy.

Over half of its non-renewable energy capacity comes from coal-fired plants, 30 percent from hydropower plants and the rest from oil-fired plants.

Last year, its profits exceeded the annual target by 59 percent at nearly VND3.93 trillion.

The IPO is part of EVN’s effort to equitize its subsidiaries. It had earlier completed the equitization of EVNGENCO 3 and is in the process of equitizing EVNGENCO 1.

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