confident of premium for IPO shares
HA NOI — Electricity of
Viet Nam is confident that its Initial Public Offering of shares in its Da Nhim
– Ham Thuan – Da Mi hydro power stations will sell at a premium.
The IPO is scheduled for
January or February as foreign investment funds increase their investment in
"good" shares, including the power industry, during the first quarter,
predicts EVN’s Equitisation and Securities Division, Dang Phan Tuong.
Major investors consider
electric shares safe, he said.
Although they are not a
yet a priority of domestic investors, they remain atop the list for
international share buyers.
But market watchers are
not as optimistic about the impending launch - intended to raise VND4.78
trillion (US$300 million) - although they agree the signals for major investors
to buy are positive.
These include the
Government’s plans to increase electric prices from next July and allow the
market to rule without State intervention by 2010.
But they warn that the
prospective price hike is not enough to compensate for the industry’s costs.
IRS Securities marketing
director Bui Ngoc Long said he does not expect foreign investment funds to be
drawn to general power-industry shares.
Instead, they were likely
to focus on new electric plants where the cost of maintenance should be
Further, the supply of
electricity-industry shares had already risen because of a boom in small-sized
power plants financed through joint stock companies and this was likely to limit
rises in share prices.
shares were still thought a worthy long-term investment.
The latest Saigon Security
Incorporate figures show that foreign investors hold high numbers of all
electrical shares listed in the HCM City stock exchange.
The hold for VSH (Vinh Son
- Song Hinh Hydro Power) is 22 per cent and for KHP (Khanh Hoa Power) and PPC
(Pha Lai Thermal Power) 13 per cent each.
were once considered blue-chip in both the listed and over-the-counter markets.