Vietnam raises over US$300 million from PV Power listing

The Vietnamese government raised 6.997 trillion dong (US$308.1million) from selling 20% of state electricity firm PetroVietnam Power (PV Power) at its initial public offering (IPO) yesterday, exchange data showed.

The proceeds slightly exceeded the government’s target of raising US$297million from the sale, which is part of a plan to privatise hundreds of state-owned enterprises to boost their performances and ease budget pressure.

Demand at the IPO of PV Power, a unit of state oil and gas group PetroVietnam that produces and distributes electricity as well as supplies coal, surpassed supply by nearly 5%, data by the Hanoi Stock Exchange showed.

The government earlier this month raised US$429 million combined from selling stakes at IPOs of Binh Son Refining and Petrochemical and PetroVietnam Oil Corp earlier this month, which are also units of PetroVietnam.

PetroVietnam is caught up in a widespread corruption crackdown, with many of its officials on trial or been given sentences ranging from jail terms to the death penalty.

Vietnam was among the world’s fastest-growing stock markets last year, with the benchmark VN Index leaping nearly 50%. It has jumped around 14% so far in 2018, despite a technical glitch that shut down the market for two days.

A further 29% stake in PV Power would be offered to strategic investors, including both foreign and domestic players. Overseas investors bought 12.15% of PV Power at the IPO.

The government also has plans to sell 12% of state-owned Vietnam Rubber Group for a projected minimum US$272million and 12.8% of electricity generator firm Power Generation Corp 3 for at least US$290million next month