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EDL Gen completes sale of shares
The EDL-Generation Public Company (EDL Gen) has completed the sale of shares offered in its initial public offering (IPO) to local and foreign investors, paving the way for the company to list on the Lao Securities Exchange (LSX).
BCEL-KT Co Ltd, which provides financial consultation and underwriting services for EDL Gen, announced yesterday that foreign nationals had subscribed for more shares in the company than were available.
“We have to return money to some foreign investors,” BCEL-KT Deputy Director Mr Hinphet Chanthalangsy told Vientiane Times yesterday, adding that he is unable to provide details on the size of the oversubscription.
He said that shares in EDL Gen were also purchased by many local investors.
The oversubscription by foreign investors reflects strong confidence in the operations of the company and also the Lao economy, which has grown rapidly over the past five years.
EDL Gen, a subsidiary of Electricite du Laos, offered 25 percent of its shares for sale last month, with 10 percent allocated to foreign investors and 15 percent to domestic investors, while the Lao government will continue to hold a majority and controlling shareholding.
The power company expects to mobilise as much as 930.5 billion kip (US$115.4 million) from sales of about 215 million shares to local and foreign investors.
The money will be used to develop the company and build more power plants.
Mr Hinphet confirmed yesterday that people who received shares in EDL Gen through the subscription process would be able to sell their stock to other investors on the LSX, which is scheduled to commence trading next week.
“If there are buyers and sellers, they can engage in trades of stock when the market opens for trading,” he said.
EDL Gen Strategic Planning and Business Development Department Director, Mr Viratha Phonkeo, yesterday expressed pleasure at the completion of the company's IPO earlier than expected.
He said EDL Gen would not be able to hold its first ever shareholder meeting before LSX opened for trading and was unable to confirm a date for the meeting.
The company would offer dividends for shareholders twice a year.
At present EDL Gen owns seven hydropower plants with an estimated installed capacity of about 384 megawatts (MW).
The company has invested in the development of new hydropower plants and expects to own 17 facilities by 2015 with a total installed production capacity of about 708MW.
EDL Gen is the second previously wholly state-owned enterprise to offer shares for public sale.
The first enterprise, Banque pour le Commerce Exterieur Lao, announced last month that its shares were oversubscribed, leaving a large number of people disappointed after they failed to buy shares in Laos's largest commercial bank.
Vientiane Times
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