Vietnam plans to raise US$289m through IPO in power firm

[HANOI] Vietnam hopes to raise at least US$289 million by selling shares in an electricity generation company through an initial public offering (IPO), the government's website said on Wednesday.

The communist state has stepped up its divestment plan from hundreds of state-owned enterprises, partly because of the need to fund a budget deficit and in the face of growing public debt, but progress has been slow.

Vietnam aims to raise at least US$289 million by selling a 12.8 per cent stake in state-owned electricity generation company EVNGENCO3, the government said.

In addition to the IPO of those shares, the government said it planned to sell a 36 per cent stake in the company to strategic investors.

REUTERS