Genco 3 confirms sale of 267 million shares in February 2018 hinh anh 1Power Generation Corporation 3 (Photo courtesy of EVN)
Hanoi (VNA) - The Power Generation Corporation 3 (Genco 3) will put more than 267 million shares, accounting for 12.8 percent of its charter capital, up for sale in its initial public offering (IPO) in February 2018.

The shares will be listed on the HCM Stock Exchange (HOSE) with the initial auction price of 24,600 VND (1.08 USD) per share. Genco 3, which is fully owned by Electricity of Vietnam (EVN), expects to receive 6.6 trillion VND (290.7 million USD) from the IPO.

EVN on December 28 said Deputy Prime Minister Vuong Dinh Hue signed Decision 2100/QĐ-TTg approving the privatisation plan of Genco 3 one day ealier.
The approved privatisation plan is to maintain its current State-owned capital and issue shares to increase its chartered capital.

Genco 3’s charter capital is 20.8 trillion VND, 51 percent of which will be owned by EVN. The corporation has a value of around 52 trillion VND (2.3 billion USD).

According to the plan, 36 percent of GENCO 3’s charter capital or 749.1 million shares would be sold to strategic investors. In addition to financial capacity, the strategic investors are required to have ability of management and power plant operation or being a joint venture with another investor whose have the above skills, EVN said.

The investors need to have commitment in writing for long-term cooperation and support to Genco 3 after its privatisation in improving management and financial capacity as well as transferring new technologies, human resource training and fuel supply.

Some 0.16 percent of its shares would be sold to labourers.

EVN would divest its capital at Genco 3 to less than controlling level after 2019 if EVN and the corporation were successful in restructuring its debts and negotiating with lenders.

Genco 3 is one of the three power generation corporations under EVN’s management. It has capacity of 6,304 MW, accounting for 16 percent of the country’s total electricity system.

By the end of 2015, Genco 3’s total revenue was 28.5 trillion VND and profit was 246 billion VND.

It has been operating Phu My 1, Phu My 2.1 and 2.1MR, Phu My 4 power plants; Vinh Tan 2 and Mong Duong 1 thermo-power plants; Tua Srah, Kuop, Srepok 3 hydro-power plants.

It also holds shares at Ba Ria, Ninh Binh, Thu Duc, Thac Ba and Vinh Son Song Hinh power plants.

Genco 3 has been the strongest unit in EVN’s power generation corporations.

Dinh Quang Tri, EVN’s deputy general director said many potential investors from Japan, the Republic of Korea, the Middle East and Thailand were meeting with the group.

Genco 3’s privatisation together with Binh Son Refinery, PV Oil and PV Power would provide a big supply in the auctions of State-owned firms in the coming months. - VNA