EVN: Slackens IPO of power sector

14/01/2008 00:00:00 - views: 1,833

Vice President of Vietnam Electricity (EVN), Mr. Dinh Quang Tri, said that EVN had just temporarily delayed the equitization of 8 power transmission units conforming to the instruction from the Prime Minister.

 According to Mr. Tri, 8 power transmission units that have postponed issuing shares to public (IPO) in 2008 are: Power Company No.1, 2 and 3; and Hai Phong, Ninh Binh, Hai Duong, Dong Nai, Da Nang One Member Limited Companies.
With 6 units consisting of Information Technology Center; Thu Duc, Phu My, and Can Tho One Member Limited Companies, Uong Bi Thermal Power Company is in the process of assessment, preparing for IPO. Da Nhim – Ham Thuan – Da Mi Hydropower Company is completing equitization plan, preparing for IPO as well.
In terms of the reason leading to the delay, as said by Mr. Tri, it has been partially because the organization and operating charter of the Corporation had not been approved by the Prime Minister until October 2007, and 2007 was also the first year when EVN switched to corporation model, and then they should encounter some difficulties.
Especially, the procedures of equitization for enterprises belonging to EVN were still complicated, which made the assessment process took them so long, and the enterprises missed the chances to mobilize capital when the market was prosperous.
The period for the registration of shares for the first time prolonged and depended on the auction agenda of Ho Chi Minh City Securities Committee and Hanoi Securities Trading Center, which restricted the activeness of enterprises.
In 2007, EVN equitized and switched to the model of a 9 member joint stock company, including: Ba Ria Thermal Power Company, Thac Mo Hydropower Company, Ninh Binh Thermal Power Company, Thu Duc Electro-Mechanical Company, Power Company No.1, 2, 3, 4 and Electricity Construction Consulting Center (of Ho Chi Minh City Power Company).
With the total value mobilized through IPO, 9 member units have helped EVN gain VND 1.974 billion. Dividends in 2007 from companies that EVN had the large share-holding was estimated at more than VND 500 billion and that from EVN’s affiliates in banking, insurance and securities sectors was approximately over VND 50 billion.

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