Doosan Skoda Power sets share price at Kc240 in IPO

Prague, Feb 6 (CTK) - Plzen-based company Doosan Skoda Power, which produces turbines and power equipment, set the price of its shares at Kc240 per share in its initial public offering (IPO), the company said in a press release today.

Doosan Skoda shares started trading on the Prague Stock Exchange's (BCPP) Prime Market under the symbol DSPW today.

According to Doosan, the public offering has attracted strong interest from both institutional and retail investors in the Czech Republic and across Europe. It was also well received by the company's eligible employees, approximately one-third of whom chose to take up the offer, it said.

A total of 10,527,000 shares were sold in the offering, including 2,900,000 new shares, 6,670,000 existing shares and 957,000 over-allotment shares. The total value of the share offer at the set offer price amounted to almost Kc2.527bn.

The selling shareholder will continue to retain a controlling majority interest of at least 67 percent in the company after the completion of the offer. Another 33 percent of the shares are expected to be free float after the offer closes.

Company head Youngki Lim said he was delighted with the interest of investors and believed that the funds raised would strengthen the company's position, increase its competitiveness on the global market and contribute to the transfer of new technologies to the Czech Republic.

"It is great that the offer has met with such interest from investors, both on the institutional side and among retail investors. This once again confirms the fact that an interesting issue always finds its investors on the right market," said BCPP head Petr Koblic. He added that he expected the issue to become part of all the main indices of the Prague Stock Exchange in the near future, once all conditions are met.

The company is to be an important subcontractor to South Korean company KHNP, the winner of the tender for the planned completion of the new nuclear reactors at Dukovany.

Doosan Skoda Power employs over 950 people in the Czech Republic and has approximately 35 employees in India. From January 1 to September 24, 2024, the company reported a profit of Kc355m. Profit for 2023 amounted to Kc559m.

tam/er