Doosan Skoda Power seeks $105 million in Prague IPO (updated)

Doosan

27/01/2025 08:39

(Adds final pricing date, proceeds, Dukovany project, dividend
policy in paragraphs 3, 8-12)
       PRAGUE, Jan 27 (Reuters) - Czech Republic-based turbine
manufacturer Doosan Skoda Power launched an initial public
offering on Monday, seeking to raise 2.53 billion crowns ($105
million) by selling up to a third of its shares in a Prague
listing.
    The company, whose ultimate parent is South Korea's Doosan
Corp  000150.KS , serves customers including energy groups CEZ
 CEZP.PR , EPH and Orlen  PKN.WA , and made a profit of 559.3
million crowns on revenue of 4.8 billion crowns in 2023.
    The offer will consist of existing and new shares, with the
price range set at 220-260 crowns per share, the company said.
Final pricing is expected by Feb. 6.
    Sole shareholder Doosan Power Systems will offer up to 6.67
million existing shares, or 23% of Doosan Skoda Power's existing
share capital. 
    Doosan Skoda Power is also offering up to 2.9 million new
shares, which would increase its total number of shares to 31.9
million, valuing the firm at 8.3 billion crowns at the upper end
of the IPO price range. 
    Up to 957,000 shares will also be available in an
overallotment, the company said.
    Doosan Power Systems will still own at least 67% of the
company after completing the offering.
    Proceeds will go towards mid-term investments while the
company also aims to lift its profile with the listing. 
    It comes as the Czech government and majority state-owned
CEZ look in the coming months to conclude talks with South
Korea's KHNP, which was chosen last year as the preferred
builder of new nuclear power units in what will be the central
European country's largest ever energy investment.
    Doosan Skoda Power noted that project as a possible future
business driver in its prospectus published on Monday.
    For the first nine months of 2024, Doosan Skoda Power
generated revenue of 3.9 billion crowns and a profit of 355
million crowns, which was steady versus the same period in 2023.
    It said it would apply a dividend payout ratio policy of 70%
of net income.
    ($1 = 23.9870 Czech crowns)

 (Reporting by Jason Hovet. Editing by Jan Harvey and Mark
Potter)
 ((jason.hovet@thomsonreuters.com;))