Gulf Energy Development PCL Preparing to Increase Its Stake in 5,300 MW Power Plants to 70%, Initial IPO Price Range Set at 40.0 45.0 Baht per Share

Energy Press Releases Friday November 10, 2017 15:51
Bangkok--10 Nov--MT Multimedia

Gulf Energy Development PCL, one of Thailand's largest independent power producers, is preparing to increase its investments in two gas-fired power plants (5,300 MW), which are under a joint development agreement with Mitsui, from 51% to 70% – in line with the Company's plan to invest and develop gas-fired power plants to support its earnings growth in the long run. The initial IPO price range has been set at 40.0 – 45.0 baht per share, which reflects the Company's clear business strategies, continuous business development plans and robust operational performance.

Mrs. Porntipa Chinvetkitvanit, President of Gulf Energy Development PCL (""GULF"" or ""the Company"") disclosed that the Company is in the process of increasing its shareholding in Independent Power Development Co. Ltd. (""IPD""), a joint venture between GULF and Mitsui, which is developing two gas-fired IPPs, with a total capacity of 5,300 megawatts (MW), that are scheduled to begin their commercial operations in 2021-2024.

The process to increase the Company's shareholding in IPD is taking place after the shareholders of IPD had a resolution to issue 198,866,667 new shares at a par value of 10.0 baht each during the Extraordinary General Meeting held today. Mitsui, which currently holds 49.0% in IPD, has waived its rights to subscribe the new shares, consistent with the joint venture agreement between GULF and Mitsui to allow GULF to increase its shareholding in IPD from 51% at present to 70%. However, under this arrangement, GULF will be entitled to 75% of IPD's dividends. GULF has oversubscribed the new shares, which in effect will increase its shareholdings in IPD to 70% once the registration of IPD's capital increase is completed. It is also in the process of arranging for its entitlement to the additional 5.0% of dividends from IPD, which is expected to be completed by February 28, 2018.

As of November 1 this year, GULF has gas-fired power plants and rooftop solar projects in operation with a total installed capacity of 4,772.1 MW. The Company is also developing a number of gas-fired power projects to add another 6,353.6 MW to its existing portfolio by 2024. During the first nine months of this year, the Company has posted a total revenue of 1,962.9 million baht, a jump of more than ten times from the same period last year when its revenue was 156.2 million baht. While its net profit during the first nine months of this year topped 2,734.7 million baht marking an increase of over 400% from the same period last year when its net profit was 500 million baht.

The Financial Advisors – including Kasikorn Securities, Siam Commercial Bank and Bualuang Securities stated that after the presentations of GULF's business strategies, business development plans and operational performance to institutional investors, they found that the investors were confident with the management's vision and the Company's business fundamentals in the power industry which tends to grow promisingly in the future. In addition, the Company has many new projects in the pipeline that will constantly commence their commercial operations. These, consequently, highlight GULF as an outstanding independent power producer in Thailand, gaining considerable attention from the investors. Therefore, the initial IPO price range is set at 40.0-45.0 baht per share, providing that the final price will be set and announced at the later stage.

Currently, GULF's registered capital stands at 10,666.5 million baht, comprising 2,133.3 million of ordinary shares at a par value of 5.0 baht each. The authorized and paid-up capital stands at 8,000.0 million baht, comprising 1,600.0 million of ordinary shares. The IPO of up to 533.3 million shares represents up to 24.99% of the Company's post-IPO authorized and paid-up capital.

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