EVNNPC to divest more than 2.3 million shares in NEEM

Workers upgrading the electric lines in Thái Bình Province. — Photo npc.com.vn

HÀ NỘI — The Hà Nội Stock Exchange (HoSE) plans to hold an auction for shares of North Electrical Equipment JSC (NEEM), which is owned by the Northern Power Corporation (EVNNPC), on December 5. 

The number of shares offered for auction amount to more than 2.3 million, which represents 26.26 per cent of NEEM’s registered capital and the entirety of EVNNPC’s investment in NEEM. This transfer of NEEM’s capital from EVNNPC is part of the approved plan by EVN to recover invested capital for the 2021-25 period. 

The starting price is set at VNĐ12,200 per share (US$0.5 a share). According to the auction regulations, foreign investors are not permitted to purchase shares.

This will be the second auction session held at HNX in 2023. Prior to this, the auction session for shares of Tia Sáng Battery JSC was successfully concluded, with a total of over 3.4 shares sold at a winning bid value exceeding VNĐ134.8 billion.

NEEM officially became a public company on June 6 this year, and is currently undergoing the procedures to register its shares for trading on the UPCoM market. Besides, EVNNPC, NEEM has two other major shareholders who hold respective stakes of 35.98 per cent and 26.26 per cent.

NEEM is located in Quế Võ Industrial Zone, Bắc Ninh, spanning an area of 23,596 square metres. Its main business involves manufacturing and assembling high-voltage, medium-voltage, and low-voltage switchboards, as well as information and telecommunications cabinets and other electrical equipment.

Due to the COVID-19 pandemic since 2019, NEEM has temporarily halted manufacturing activities and focused on selling outdoor high and medium voltage equipment, switchboards, transformers, new energy power stations, power quality management devices and circuit breakers for city power grids. Its primary market is the northern region.

In 2022, NEEM achieved sales revenue of over VNĐ24.67 billion with a profit after tax of more than VNĐ560.33 million. 

In the first nine months of 2023, its sales and service revenue amounted to over VNĐ15.35 billion, but posting a loss of VNĐ343.8 million. — VNS