Prague Stock Exchange Gears Up for Major IPO
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Loading... - Fiona Walsh
- 10 Feb 2025
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The Prague Stock Exchange is preparing for its first significant initial public offering (IPO) in over four years, marking a notable event in the Czech financial landscape. The upcoming IPO is being led by Doosan Skoda Power, a steam-turbine manufacturer and a Czech subsidiary of South Korea's Doosan Enerbility Co.
Doosan Skoda Power is seeking to offer a minority stake to the public as the Czech Republic transitions away from coal and revamps its energy infrastructure. The country’s new energy plans include investments in nuclear, gas-fired, wind, and solar power stations, reflecting a broader commitment to sustainable energy solutions. The funds raised from the IPO will be directed towards enhancing the company’s competitiveness through investments in new machinery and facilities.
According to a statement released on Wednesday, investors will have the opportunity to purchase up to 33.33% of Doosan Skoda Power. The offering will consist of approximately 21.5% to 26.5% of existing shares held by the parent company, along with about 5% to 10% of ordinary shares to be issued by Doosan Skoda.
Youngki Lim, the Chief Executive Officer of Doosan Skoda Power, expressed pride in the upcoming IPO, stating, “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 CEE region.”
If successful, this IPO will mark the first listing on the Czech Republic’s main stock market since the 2020 offering of Ceska Zbrojovka, now known as Colt CZ Group SE. The return of significant IPOs to the Prague Stock Exchange is seen as a positive indicator of investor confidence and a revitalization of the local market.
The upcoming IPO by Doosan Skoda Power represents a pivotal moment for the Prague Stock Exchange and the Czech economy as it embraces a new energy future. As the company seeks to attract investors and enhance its operations, this offering could pave the way for further growth and investment opportunities in the region. The successful execution of this IPO may also encourage other companies to consider going public, contributing to a more dynamic financial market in the Czech Republic.
