Plzeň-based Doosan Škoda Power announces offer of part of its shares on Prague Stock Exchange

Plzeň-based Doosan Škoda Power, which manufactures turbines and power equipment, has announced the launch of a public offering of some of its shares on the Prime Market of the Prague Stock Exchange. The price range for the offering has been set at 220 to 260 Kč per share. Retail investors in Czechia will be able to buy shares; part of the offering will be for institutional investors and part for company employees. The company said in a press release today.

Doosan’s owner is offering up to 6.67 million existing shares from its holdings, representing a 23 percent stake. It will also offer up to 2.9 million newly issued shares, equivalent to ten percent of all existing shares. In addition, the selling shareholder is prepared to offer up to a further 957.000 shares. The company expects to announce the final offer price and total number of shares at around 5 February.

The offer period, during which investors can place orders for the shares on offer, is expected to end at 17:00 CET on 5 February 2025 for institutional investors. The offer period is expected to end at 13:00 CET on 5 February for retail investors and eligible employees.

The selling shareholder will retain a controlling majority stake of at least 67 percent in the company after the offering is completed. Between 30 and 33 percent of the shares are expected to be in free float after the offering.

„I firmly believe in the company’s continued growth, a successful listing on the Prague Stock Exchange and strong investor interest. We have worked on the transaction for more than a year and prepared a very attractive offering for investors,“ Doosan Škoda Power Chairman and CEO Lim Jong-ki said at a press conference.

The arrival of Doosan Škoda Power will be a welcome addition to the Prague Stock Exchange’s main market, XTB analyst Tomáš Cverna told ČTK. Although Doosan’s primary target group of customers is in the energy industry, it is not a conventional electricity generator, so its arrival on the Prague exchange will increase the diversity of listed companies. If the company succeeds in pricing the shares at the midpoint of the range, or 240 Kč each, the approximate valuation of the entire company will be 7.66 billion crowns, he added.

Doosan Škoda Power is expected to be a major subcontractor to tender winner South Korean company KHNP in the planned completion of new nuclear reactors at Dukovany. The company employs more than 950 people in Czechia and around 35 in India. From the beginning of last year to 24 September, the company reported a profit of 355 million crowns; for 2023, it reported 559 million crowns.