Vietnam's biggest coal-fired power plant to list
HANOI - Power plant operator Pha Lai Thermal Power Co has been licensed to list on Vietnam's over-the-counter stock market, which would double the tiny market's value to $979 million.
The State Securities Commission, the stock market watchdog, said on Tuesday the OTC market had licensed the operator of Pha Lai's two coal-fired power plants, Vietnam's largest of their kind, to list more than 307 million shares.
Last week, investors seeking to buy Pha Lai shares on the unofficial markets priced the stock at 26,000 dong ($1.63), valuingthe firm at around $500 million, making it the country's second-largest listed firm after Vinamilk.
Vietnam Dairy Products Co. (Vinamilk) is the largest of the 35 companies listed on the main stock exchange in Ho Chi Minh City . Vinamilk has a market value of $893 million, nearly half the size of the exchange.
The operator of Pha Lai plants has yet to announce its debut date. Once listed, it will be the 12th stock on the OTC market and the third firm listed there from the energy sector along with a hydro power plant operator and an utility distributor.
Dominant state utility Electricity of Vietnam owns 78.16 percent of the firm, employees have 2.13 percent and outsiders hold 19.71 percent, including four foreign investors who together own 1.93 percent.
Pha Lai's plants are in the northern province of Hai Duong, 65 km (40 miles) east of Hanoi.
The value of the Hanoi OTC market, now with 10 stocks, would soar nearly 105 percent to 15.6 trillion dong ($979 million) after Pha Lai firm makes its debut.
Another company, Taiwan's Tung Kuang Industrial Co, has also been licensed to list on the market, but it has yet to announce a date.
The OTC said in a statement on Monday trading sessions would be increased to five times per week in June from three now to meet higher demand.
Finance Minister Nguyen Sinh Hung told Reuters earlier on Tuesday that Vietnam planned to double the number of companies listed on the Ho Chi Minh exchange and its market value this year. ($1=15,932 dong)
Reuters - May 16, 2006.
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