GENCO 3 – IPO Note – 20180208

• Genco 3 will hold an IPO auction on February 9th, 2018. The company is currently the largest power generation player in the market with a diversified portfolio of multi-source power plants. However, Genco 3 has high leverage and is highly exposed to fluctuations in foreign currency. We expect that the involvement of strategic investors in the company after privatization will improve Genco 3’s balance sheet, through restructuring of forex borrowings.
• We think Genco 3 is more suitable for investors with long term investment horizons and consider PVPower to be a more attractive target in the power generation sector. IPO scheduled for February 9th, 2018; strong interest from strategic investors.

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