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The company aims to sell up to 33% of its shares, priced between 220 Kc and 260 Kc each. Czech steam turbine manufacturer Doosan Skoda Power has initiated an initial public offering (IPO) in Prague, emphasising its nuclear energy expansion plans. The company, a unit of South Korea’s Doosan Enerbility, anticipates new contracts in the Czech Republic and globally, driven by investments in nuclear and gas-fired power stations, as reported by Bloomberg. Doosan Skoda will retain at least 67% of the unit and plans to relocate some generator and gas turbine production to its Czech unit. A portion of the IPO proceeds will fund the expansion of these facilities. Doosan Skoda Power CEO Daniel Prochazka stated: “We see huge potential for us in nuclear energy, including small modular reactors.” The company aims to sell up to 33% of its shares, priced between 220 Kc and 260 Kc ($9.10 to $10.86) each, with the subscription period concluding on 5 February 2025. If successful, the transaction could value the company at up to 8.3bn Kc, marking the largest Prague listing in more than four years. Despite being smaller on the Prague stock market, the IPO could revitalise the bourse, which has faced declining volumes and delistings. However, the Czech Republic’s PX Index has surged 29% since January 2024 reaching its highest level since 2007. The IPO, if priced at the mid-point and fully subscribed, including the over-allotment option, will raise 2.53bn Kc. Most proceeds will go to the selling shareholder, a UK-based Doosan unit, to repay debt before its dissolution. Doosan Skoda Power reported revenue of 4.81bn Kc and earnings before interest, taxes, depreciation and amortisation (EBITDA) of 662m Kc in 2023. The company, headquartered in Plpen, projects compound annual revenue growth in the mid-to-high teens and plans to distribute at least 70% of profits to shareholders. The IPO price range suggests a valuation of 10 to 11.5 times EBITDA, according to Doosan Skoda Power CEO Youngki Lim. “We had to offer a relatively sizeable discount to make the offering marketable. While the offer price is relatively low, we firmly believe the valuation will soon catch up with our competitors,” Lim noted. |
