Genco 3 confirms sale of 267 million shares in February 2018

The shares will be listed on the HCM Stock Exchange (HOSE) with the initial auction price of VND24,600 (US$1.08) per share. Genco 3, which is fully owned by Electricity of Vietnam (EVN), expects to receive VND6.6 trillion (US$290.7 million) 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 earlier.

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 VND20.8 trillion, 51% of which will be owned by EVN. The corporation has a value of around VND52 trillion (US$2.3 billion).

According to the plan, 36% 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% 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% of the country’s total electricity system.

By the end of 2015, Genco 3’s total revenue was VND28.5 trillion and profit was VND246 billion.

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.