HCM City (VNS/VNA)- The Power Generation Corporation 2 (EVNGENCO 2), a subsidiary of the VietnamElectricity Group, plans to sell over 580.12 million shares, or 48.8875 percentof its charter capital, to investors and over 1.33 million shares, or 0.1125 percent,to employees.

An initial public offering willbe held at the Ho Chi Minh Stock Exchange, with the shares auctioned at astarting price of 24,520 VND (1.06 USD).

EVNGENCO 2 held an IPO roadshow in HCM City on January 21 to tell investors about the opportunity forinvesting in the company.

It saw the participation ofrepresentatives from the Government Office, ministries, the State SecuritiesCommission, the Hanoi and Ho Chi Minh City Stock Exchanges, VietnamElectricity, economists, energy experts, representatives of auditing andsecurities companies, and potential investors.

The company was valued at 46.1trillion VND (2.01 billion USD) as of January 1, 2019, with the Government’sstake being worth more than 26.6 trillion VND.

Fully owned by EVN, EVNGENCO 2has seven dependent accounting units, holds 100 percent stake in one companyand at least 51 percent in five others, which are operating in various fieldsranging from hydroelectricity to thermal power.

According to AssociateProfessor Dr Vu Minh Khuong of the National University of Singapore, theequitisation of EVNGENCO 2, 100 percent owned by EVN, attested to the effortsto reform the power sector and offers valuable investment opportunities toinvestors.

“EVNGENCO 2 has an importantposition in the power sector, good business efficiency, healthy finance, andcompetent staff. As of the end of 2020, EVNGENCO 2 had an installed capacity of4,461 MW, accounting for 6.4 percent and 15.1 percent of the country’s totalinstalled capacity and EVN’s total installed capacity.”

Its return on equity was around10 percent in 2018 and 2019, which is high for the sector, he said.

In terms of finance, equityaccounts for more than a third of total assets, which is considered healthy inthe power sector, he said.

“EVNGENCO 2 has great potentialfor growth.”

With a number of power plantsin strategic locations across the country, EVNGENCO 2 would achieve very highgrowth in future, he said.

“In addition, with its effortsto embrace digital transformation and apply new technologies, EVNGENCO 2 isexpected to make great strides in improving its production efficiency in thenext three to five years, especially operational efficiency and significantlyreducing the environmental impacts of coal-fired thermal power plants, whichcurrently account for 50.7 percent of its total generation capacity.”

It has also actively investedin clean energy projects across the country, he said.

It recently completed 50 MWpsolar power projects, and is in the process of building wind power plants witha capacity of 55 MW, and is applying for investment policies for eight newpower projects with a total capacity of 2,593 MW comprising six solar powerplants and two thermal plants.

Its strategies for the futureinclude focusing on improving operational efficiency at existing plants andstepping up investment in renewable energy, Khuong said. 

In addition, people investingin EVNGENCO 2 would greatly benefit not only from EVNGENCO 2's own rapid growthbut also Vietnam's.

Tran Phu Thai, EVN GENCO 2’s Chairmanof the Members’ Council, said: “EVNGENCO 2 has strived to become a leader inthe electricity generation sector in Vietnam and a socially and environmentallyresponsible company.”

Duong Quang Thanh, EVN’s Chairmanof the Members’ Council, said EVNGENCO 2 always enjoyed good profits sinceit was established in 2013.

The power sector is expected tosustain at least 10-12 percent growth in generation capacity for the next 20-30years to meet the country’s demand, offering investors a great opportunity, hesaid./.