BCG Energy shares to be traded on UPCoM from July 31

BCG Energy JSC, a member of Bamboo Capital Group, will begin trading its 730 million BGE shares on the Unlisted Public Companies Market (UPCoM) on July 31, 2024.

Its reference price on the first trading day has been set at VND15,600 ($0.62) per share, with a fluctuation range of +/- 40%.

With 730 million registered shares, the company’s capitalization stands at VND11,388 billion ($449.4 million).

BCG Energy began IPO procedures in 2023. On May 20, 2024, it officially became a public company, and then was granted the code BGE by the Vietnam Securities Depository and Clearing Corporation (VSDC) on June 18, 2024.

Trading on the UPCoM is an important milestone in BCG Energy's journey to becoming an officially listed company.

BCG Energy, established in 2017, is the energy arm of Bamboo Capital Group. Currently, it has a charter capital of VND7.3 trillion ($288 million), equity of nearly VND10 trillion ($394.6 million), and total assets of nearly VND20 trillion. The company operates about 600 MW of solar power and is one of the top three renewable energy developers in Vietnam.

In the last three years, BCG Energy has continuously recorded positive results. Its revenue rose from VND760 billion ($30 million) in 2021 to VND1,064 billion in 2022 and VND1,125 billion ($44.42 million) last year, mainly thanks its solar power plants and rooftop solar power systems reaching more-than-expected operation efficiency.

In parallel with the positive growth in revenue, BCG Energy's debt-to-equity ratio has continuously decreased over the years, from 2.77 times in 2021 to 1.9 times in 2022 and only 0.96 times in 2023.

This is a safe and significantly low leverage level compared to other listed businesses in the same industry. In addition, BCG Energy's loan-to-equity ratio by the end of 2023 also decreased to a very safe level, only 0.66 times.

At the end of the first quarter of 2024, BCG Energy's renewable energy segment was the largest contributor to Bamboo Capital Group's total revenue, accounting for 32.5%, equivalent to VND320.4 billion ($12.64 million). The renewable energy segment is expected to make a major contribution to the group's revenue and profit in the coming quarters.

BCG Energy currently owns a portfolio of nearly 1 GW approved under the National Power Development Plan VIII (PDP VIII) to be carried out until 2030. Notably, a series of large-scale wind power projects, including Dong Thanh 1 wind power (80 MW) and Dong Thanh 2 (120 MW) in the Mekong Delta province of Tra Vinh, and Khai Long 1 (100 MW) in the southernmost province of Ca Mau, will be deployed by BCG Energy this year. Once put into operation in 2025, these projects will increase the company’s total power generation capacity by about 53%.

BCG Energy is also operating large-scale solar power plants: BCG Long An 1, BCG Long An 2, BCG Vinh Long, BCG Phu My, and Krong Pa 2. The company has also developed rooftop solar power systems in many provinces and cities across the country; while implementing near-shore wind power projects in Ca Mau, Soc Trang, and Tra Vinh in southern Vietnam, and researching potential wind power projects in the northwestern province of Dien Bien.

Recently, BCG Energy has been chosen as partner by large corporations and international financial institutions when investing in Vietnam. Among those are SP Group, Sembcorp, SK Group, Hanwha Group, Leader Energy Group, and Sudokwon Landfill Site Management Corp (SLC).

With the experience of a leading enterprise in the clean energy industry in Vietnam, on January 31, 2024, BCG Energy acquired Tam Sinh Nghia Investment and Development Company, officially entering the field of waste-to-power development. On July 20, Bamboo Capital Group and BCG Energy held a groundbreaking ceremony for the construction of the Tam Sinh Nghia waste-to-power plant in Thai My commune, Cu Chi district, Ho Chi Minh City.

The first phase of the plant will be implemented from 2024 to 2025 with a total investment of VND6.4 trillion ($252.7 million), capable of burning 2,000-2,600 tons of waste and generating 60 MW of electricity per day.

About 365 million kWh of electricity is expected to be supplied to the grid per year, meeting the needs of about 100,000 households, while helping to reduce emissions by about 257,000 tons of CO2 per year.

The second phase is expected to be carried out from 2026-2027, with the waste incineration capacity increasing to 6,000 tons per day and a daily electricity generation capacity of up to 130 MW, becoming the largest waste power plant in the world.

Its third phase is expected to be deployed from 2027 to 2029, with 8,600 tons and 200 MW respectively.

Along with the construction of the Tam Sinh Nghia waste-to-power power plant in HCMC, BCG Energy will soon build others in Long An and Kien Giang provinces.

The development of renewable energy projects and the construction of additional large-scale waste-to-energy plants will help consolidate and enhance BCG Energy's leading position in renewable energy in Vietnam.