Petrovietnam subsidiary PV Power to issue over 725 mln shares for chartered capital hike

PV Power has approved a plan to increase its charter capital from VND23,418 billion to over VND30,678 billion through share issuances, using the proceeds to fund the Nhon Trach 3 & 4 power plant projects in Dong Nai province.

The capital hike plan was approved at the company's (HoSE: POW) extraordinary general meeting of shareholders (EGM) in Hanoi on Thursday.

It will be the company's first capital hike since going public in 2018.

The capital expansion will be carried out through three channels.

First, an offering to existing shareholders. PV Power will issue more than 281 million shares at a ratio of 12% (shareholders owning 100 shares have the right to buy 12 new units), reaping about VND2,810 billion ($106.4 million) in proceeds.

Implementation is scheduled for late 2025 to Q1/2026, pending State Securities Commission approval.

Second, a bonus share issuance from owner’s equity. The company will issue more than 351 million shares at a ratio of 15%, valued at over VND3,512 billion ($132.98 million), using the development investment fund reported in its 2024 financial statements.

Third, a stock dividend payment. PV Power will issue more than 93.6 million shares at a ratio of 4%, valued at approximately VND936 billion ($35.44 million), sourced from undistributed post-tax profits for 2024.

Additionally, the EGM approved amendments to certain business line registrations to remove foreign ownership restrictions, updated the company’s head office address, adjusted its charter, and ratified the transfer of gas purchase agreements for the Ca Mau 1 & 2 power plants from Petrovietnam to PV Gas, another subsidiary of Petrovietnam.

The Nhon Trach 3 & 4 power plants, located in Nhon Trach district, Dong Nai province, are currently in the final development stage and are expected to begin commercial operation (COD) by late 2025 and early 2026.

The project has a total capacity of 1,500 MW and an investment cost of $1.4 billion. Once operational, it will supply around 9 billion kWh of electricity annually.

This is a national key project with several firsts, including the first and most advanced power project using imported LNG in Vietnam; the first to adopt the 1:1:1 (turbine-boiler-generator) configuration in the country; and one of the few gas turbine units worldwide with capacity exceeding 500 MW and efficiency above 60%.

Once operational, the project will help accelerate Vietnam’s clean energy transition and support the Government’s commitment to achieving net-zero emissions by 2050, while also playing a vital role in ensuring national energy security.

On the Ho Chi Minh Stock Exchange (HoSE), POW shares closed Friday at VND14,950 ($0.57) apiece.