Vietnam Oil and Gas Group is looking to privatise PetroVietnam Power Corporation through a stake sale and an initial public offering by end of the year.
The state-owned firm is selling up to 29 percent of its stake to institutional investors and long-term strategic partners, while seeking an IPO and listing for divesting a 20 percent interest on the domestic stock exchange.
The current equity valuation of PV Power stands at $1.478 billion, while it has a $2.671 billion total enterprise valuation, according to an investment presentation from PV Power. The exit could see PV Power reap $700 million from the sale.
The Hanoi-based company, which is the second-largest power producer in Vietnam after EVN, has a total capacity of over 4.2GW in coal and gas-fired and hydropower generation, and supplies around 12 percent of the whole electricity market. It says its portfolio will grow to over 10GW by 2026, in response to anticipated power consumption growth.
“Strong economic and sector outlook for Vietnam supports an annual 8-10 percent projected power demand growth through 2025,” said PV Power.
Interested parties are invited to submit non-binding bids in September, followed by a final bidding process in the coming four months.