The total installed capacity of power plants under Power Generation Corporation 3 accounts for 16% of the total installed capacity of national power system - Source: EVNGENCO 3
Offering more than 267 million shares
The total number of shares in this IPO of EVNGENCO 3 is 267,051,900 shares, representing 12.8355% of the charter capital of the Corporation.
The starting price of the auction is VND 24,600 per share. Roughly calculated at this price, the IPO of the Corporation is valued at more than VND 6,500 billion.
Investors need to register and pay deposits between January 16 and February 1, 2018 (from 8h30 to 16h00 on working days) and submit their auction registration forms at the latest 15h00 February 7, 2018, at auction agents in accordance with the regulations of Ho Chi Minh City Stock Exchange.
The equitization plan of parent company – Power Generation Corporation 3 (EVNGENCO 3) was approved by the Government at Decision No. 2100/QD-TTg dated December 27, 2017.
After being equitized, the charter capital of EVNGENCO 3 will be VND 20,809 billion. In particular, EVN will hold over 1.06 billion shares, accounting for 51% of the charter capital. In addition to the public auction, EVNGENCO 3 offers 3.42 million preferential shares to its employees, equivalent to 0.16% of the charter capital. The shares to be offered to strategic investors will be 749.12 million shares, accounting for 36% of the charter capital.
From 2020, if EVN and EVNGENCO 3 can restructure its debts and reach agreement with lenders, EVN will consider divesting its capital from EVNGENCO 3 until lower than the dominating level.
Many attractive advantages
Low risk, high efficiency and high capacity proportion in the national power system, especially in the South, are potential advantages of EVNGENCO 3 to attract investors.
EVNGENCO 3 currently manages seven large power plants situating from the North to the South in all types: hydropower, combined cycle gas turbine, and coal fired thermal power. The Corporation is managing the two largest thermal power complexes in the country which are Phu My and Vinh Tan, located very close to the southern key economic zone - one of the largest load centers in the country.
The total installed capacity of EVNGENCO 3’s power plants is 6,304MW; equivalent to 16% of the total installed capacity of the national power system. EVNGENCO 3 is also evaluated as a large enterprise, only after EVN in terms of capacity and generation output in the electricity market. Power plants of the Corporation have entered the competitive electricity market from the beginning, so EVNGENCO 3 has a lot of experiences in negotiating contracts and transactions in the electricity market.
The Corporation always ensures that power plants operate safely, uninterruptedly and stably, having a high availability, timely meeting the dispatching of the National Load Dispatch Center, and effectively offering prices in the market. Especially, during the peak time in dry season, the Corporation met nearly 40% of the electricity demand in the South.
EVNGENCO 3 has well performed solutions to improve its production and business efficiency. In particular, its satisfactory participation in the electricity market is one of the effective solutions, and also a great advantage of EVNGENCO3 in the equitization process. According to the Government’s policy, the competitive wholesale electricity market will officially operate from 2019. This will be a great opportunity for EVNGENCO 3 in its development path in the near future.
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Power generation output of EVNGENCO 3 during 2014 - 2017
(Unit: billion kWh)
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2014
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23.186
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2015
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30.007
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2016
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33.654
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2017
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33.165
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