Vietnam raises $308 mln from PV Power listing

The Vietnamese government raised VND6.997 trillion ($308.1 million) from selling 20 percent of state electricity firm PetroVietnam Power at its initial public offering (IPO) on Wednesday, exchange data showed.

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

Demand at Wednesday’s 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 percent, data by the Hanoi Stock Exchange showed.

The government earlier this month raised $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 percent. It has jumped around 14 percent so far in 2018, despite a technical glitch that shut down the market for two days.

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

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