Poor demand for the initial public offering (IPO) of Vietnam’s Power Generation Corp 3 was due to volatile markets and company-specific factors such as a high valuation, and should not derail the country’s privatization drive, analysts and investors said. Exchange data showed on Friday the government sold just 0.36 percent of Vietnam’s second biggest generating company by installed capacity to raise around $8 million, far short of its target to sell a 12.8 percent stake for $290 million. However, market players said that was not a sign investors were turning their back on the privatization campaign of the fast-growing Southeast Asian country, but rather of this week’s global stock market sell-off and concerns about Power Generation Corp’s (EVNGENCO 3) debt, valuation, and coal-fired plants. “It’s not the right market environment right now,” said Thomas Felix Baden, acting CEO at United Capital Management Company (UNICAP). “You also have a bit of a heavy balance sheet.” Though EVNGENCO 3’s debt-to-equity ratio had fallen to 6.5 by September last year from 8.8 in 2016, analysts said debt remained a concern, particularly given the currency risk of its foreign loans. Another worry was the fact that coal fuels about 40 percent of its electricity output, at a time when Vietnam’s coal output is falling and environmental concerns are rising. Investors also cited a high valuation. Vu Thu Ha, a senior analyst at Ho Chi Minh City Securities, said the company’s prospective price-to-earnings ratio of 19 times compared with 15 for regional peers. The IPO… [Read full story]
Prospective investors have registered interest in less than three percent of the stake Vietnam is selling in its Power Generation Corp 3 IPO-EVN.HM electricity firm, official data showed. Despite the country’s fast-growing power market, buyers have shunned the initial public offering because of the valuation, equity analysts said. That has doomed government hopes of raising at least $290 million from the latest sale in an accelerated privatization campaign. The government has offered a stake of 12.8 percent in Vietnam’s second-biggest power generator by installed capacity, also known as EVNGENCO 3 and Genco 3. The sale is due to close on…... [read more]
The Hanoitimes - The first phase of the largest rooftop solar power system in Vietnam has been put into operation at Song Than Inland Clearance Depot (ICD) in southern Binh Duong Province. The system, with capacity of 500.96kWp, has been constructed by SolarESCO, a member of renewable energy solution provider SolarBK, in four months. The first rooftop solar power system at the New Port-Song Than Inland Clearance Deport in Binh Duong province. Photo: SolarBK The system is expected to save about 4.5 percent of the port’s monthly expense for power, more than 14 billion VND a year, and reduce annual…... [read more]
CP Vietnam still owned by Thailand despite stake transfer By Pham Thai - The Saigon Times Daily HCMC - CP Group Thailand has claimed CP Vietnam Livestock Corporation still under its ownership and that the firm’s ownership restructuring this July was simply to facilitate its capital mobilization and production in Vietnam. Montri Suwanporsi, deputy financial manager of CP Group, informed on Monday a 29% stake of CP Vietnam is now held by CPF, a listed company under CP Group in Thailand. The remaining 71%, worth some US$600 million, was announced to have been acquired by the China-based CP Pokphand (CPP)…... [read more]
Related News Tax authorities set eyes on “Flappy Bird” creator’s bank account Apr. 14, 2016 Tax incentives cause Vietnam’s public services to suffer: ActionAid Apr. 14, 2016 Vietnam considers slashing corporate tax despite soaring budget deficit By An Hong  July 7, 2016 | 05:19 pm GMT+7 While the government is desperate for measures to ease budget deficit, corporate tax rates might actually fall. Despite a soaring budget deficit, Vietnam will lower taxes on corporate revenues as the current tax rate, according to the finance minister Dinh Tien Dung, is too high. The World Bank in its Doing Business 2016 report…... [read more]
The second plenary session of the Vietnam Private Sector Forum (VPSF) 2017 will take place in Hanoi at the end of July, chaired by Prime Minister Nguyen Xuan Phuc and leaders from the government, departments, international organizations, and business associations. Mr. Truong Gia Binh, Chairman of FPT Corporation and Chairman of VPSF's Advisory Board, speaks at the event announcing VPSF 2017 Ms. Pham Thi Ngoc Thuy, VPSF’s Deputy General Secretary, within the framework of the VPSF Forum 2017 and in cooperation with the Vietnam Young Entrepreneurs’ Association, will launch a survey for the CEO Confidence Index (CEO.CI) with technical assistance…... [read more]
