Doosan Enerbility subsidiary expected to serve as outpost for European nuclear power deals
Doosan Skoda Power, the turbine subsidiary of Korean nuclear power plant builder Doosan Enerbility, is eyeing an initial public offering on the Prague stock exchange in the Czech Republic, as Doosan aims to score more overseas contracts amid rising demand for energy in Europe.
Doosan Skoda Power held an intention-to-float, or ITF, meeting with local media and stakeholders of the related industry in Prague on Thursday. The turbine manufacturer plans to announce the official investment guideline, including a timeline and offering price per share, on Jan. 27.
The IPO would mark the first time a private power plant equipment manufacturer is listed on the Prague Stock Exchange.
The company said the offering would comprise between 21.5 percent and 26.5 percent of its existing shares, and up to the equivalent of 5 to 10 percent of shares to be issued by the firm. It added that Doosan Power Systems, the selling shareholder, will maintain a significant majority of no less than 66.67 percent after the completion of the offering.
“As an engineering company with more than a century of tradition, strong roots and solid plans, it is an honor for us to be introduced to the Czech capital market and to link our future even more closely to the development of the energy sector and the entire economy of the (Central and Eastern European) region,” said Lim Young-ki, CEO of Doosan Skoda Power.
Doosan Skoda Power, one of the world’s leading steam turbine original equipment manufacturers, has delivered more than 570 turbine units since 1960. Doosan Group, a Korean heavy industries conglomerate, acquired a 100 percent stake in Skoda Power in 2009 at a price of about 800 billion won ($549 million today).
Doosan Skoda Power noted in the ITF announcement document that Doosan Enerbility intends to promote its subsidiary as a European hub of the Doosan Group for the production and servicing of two-pole air-cooled generators, gas turbines and hydrogen combustion turbines.
Doosan Skoda Power added that it “seeks to capitalize on the opportunities arising from the transition and increased focus of numerous European nations on nuclear energy,” including its cooperation with Korea Hydro & Nuclear Power -- the engineering, procurement and construction contract provider -- who was selected as the preferred supplier of two new nuclear reactors worth about 24 trillion won at the Czech Republic’s Dukovany power plant in July last year.
On the back of Doosan Skoda Power's IPO attempt news in Prague, the stock price of Doosan, which owns a 30 percent stake in Doosan Enerbility, closed at 288,000 won per share, up 5.11 percent from the previous day’s closing, while Doosan Enerbility shares gained slightly to hit 20,800 won, up about 2.46 percent on the day.
