Turbine maker Doosan Skoda Power shares jump in Prague IPO (updated)

Doosan Skoda Power as

06/02/2025 11:34

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      Stock jumps as much as 16.7%
    

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      Books more than twice oversubscribed
    

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      IPO price set in middle of range
    

  
 (Adds stock rise in lead, details from paragraph 7)
    By Jason Hovet and Jan Lopatka
       PRAGUE, Feb 6 (Reuters) - Doosan Skoda Power's  DSPW.PR 
shares jumped by as much as 16.7% in their first hours of
trading on Thursday after the Czech-based turbine maker set its
IPO price in the middle of range.
    The listing of Doosan Skoda Power, which has a free float of
33%, represents a boost to the Prague Stock Exchange (PSE),
which has seen a dearth of IPOs in recent years.
    The 240 crowns per share pricing gives Doosan Skoda Power a
market capitalisation of 7.66 billion crowns ($316.33 million),
below Czech soft drinks group Kofola CeskoSlovensko  KOFOL.PR 
with a capitalisation of around 9 billion crowns and on the
lower end of the bourse's prime market.
    Doosan Skoda Power stock was up 15.8% to 278 crowns at 1130
GMT.
    The company's main ultimate owner is South Korea's Doosan
Corp  000150.KS  and the Czech unit serves customers including
energy groups CEZ  CEZP.PR , EPH and Orlen  PKN.WA , reaching
markets in Asia and South America as well as the Czech Republic
and Europe.
    It made a profit of 559.3 million crowns on revenue of 4.8
billion crowns in 2023. The company has said it planned a
dividend policy of paying out at least 70% of profits.
    Pricing was at the midpoint of the 220-260 crowns per share
range in the IPO led by Raiffeisenbank and WOOD&Company.
    Raiffeisenbank Czech Head of Investment Banking Radek Musil
said books were more than twice oversubscribed. 
    WOOD&Company Investment Banking Director Milos Cebik said
the proportion of retail and institutional investors was around
50-50, and most investors were Czech-based.
    Doosan Skoda Power said it sold 2.90 million new shares,
6.67 million secondary shares and 957,000 overallotment shares,
with gross proceeds of 696 million crowns go to the company for
mid-term investments.
    The listing comes as the Czech government and majority
state-owned CEZ look this quarter 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 is confident about winning turbine and
potentially other orders for that project, its Chief Operating
Officer Daniel Prochazka told reporters.
    Prague Stock Exchange Chairman Petr Koblic said the IPO
showed there was a large available liquidity pool held by
domestic investors which he said showed the potential for
further listings. He said that he expected that Doosan Skoda
would be included in PSE's main indices. 
 (= 24.2150 Czech crowns) 

 (Reporting by Jason Hovet and Jan Lopatka; Editing by Alexander
Smith)
 ((jason.hovet@thomsonreuters.com;))