PV Power will shift its listing from the Unlisted Public Company Market (UPCoM) to the HCM Stock Exchange by the end of this year, the company announced in its first shareholders’ meeting on Tuesday in Ha Noi.

The first shareholders’ meeting was held nearly five months after its initial public offering (IPO) on January 31.

PV Power’s shares (POW) are trading at around VND13,500 (US$0.59) per share on the UPCoM.

Founded in May 2007, PV Power is an energy arm of the Viet Nam National Oil and Gas Group (PetroVietnam) and has grown to be the country’s second-largest energy producer after Electricity of Viet Nam (EVN).

It has provided more than 162 billion kWh to the national grid since its establishment.

PV Power is managing five power plants nationwide. It has been endorsed by the Prime Minister to be the investor in two thermal power plants, Nhon Trach 3 and 4, with total installed capacity of 1,500MW.

In the first six months of this year, PV Power produced nearly 11.78 billion kWh, up 5 per cent over the target for the first half. Its consolidated revenue is estimated at nearly VND17.4 trillion ($763.2 million) while its net profit is projected at nearly VND1.26 trillion, a rise of 9 per cent and 60 per cent over the targets, respectively.

The shareholders’ meeting also approved the plan of transferring the company into a joint stock company starting July 1.

PV Power is expected to spend VND702.5 billion to pay shareholders the first dividend at the rate of 3 per cent in the latter half of this year. This rate is lower than the initial plan of 6 per cent set in its prospectus before the IPO.

According to Nguyen Xuan Hoa, PV Power’s general director, this change is due to the alteration in its equitisation roadmap, following which it becomes a joint stock company after July 1.

“Taking into account both revenue and profit, the 3 per cent cash dividend is calculated for the second half of 2018. It’s not large but demonstrates the company’s concomitance with shareholders,” Hoa told shareholders.

Regarding the strategic investor issue, PV Power’s chairman Ho Cong Ky said the company would not seek strategic investors, as the previously approved plan called for, due to the change in mechanism.

The 28.82 per cent unsold capital stake will be transferred to PetroVietnam, following which PetroVietnam’s stake will increase to 79.94 per cent.

The change in the ownership structure was approved by the Prime Minister, Ky said, adding that in case the company needed to have a major shareholder, PetroVietnam could divest capital in the whole lot.

PetroVietnam will construct the divestment roadmap through which it will reduce its holding to less than 51 per cent at a suitable time, Ky said.

PV Power aims to produce nearly 9.8 billion kWh in the last six months of the year, earning total revenue of VND14.04 trillion and net profit of VND858 billion. — VNS