| Abstract [eng] |
One of the most discussed questions in Lithuania is a plan to build a new nuclear power plant. Nuclear power plant requires deep investments, which may be problematic in current harsh Lithuania economics conditions. Therefore, the possible solution lies in financing part of investments through public offering of shares in stock market. Such public offer is called Initial public offering (IPO). During IPO investors can buy offered shares and become shareholders. The key element for a successful IPO is sufficient investors’ interest and demand. Usually investors buy shares of companies, they have sufficient relevant information about. Therefore, the purpose of master thesis is through created structured research model investigate IPO probabilities for a Visaginas nuclear power plant case. Master thesis contains three parts. First part describes IPO realization peculiarities and based on this info, IPO opportunities investigation model is created. In second part, based on created model, systematic IPO opportunities for Visaginas nuclear power plant market research is given. Third part contains a financial model and financial research of this IPO opportunity. Theoretical and empirical analysis led to following conclusions:  Atomic energy is one of the most competitive among alternative energy generation technologies.  The investigation of IPO market as well as investigation of IPO advantages and disadvantages led to the positive conclusion on both variables.  Baltic countries energy producers fail to generate sufficient electricity supply for a competitive price, as a result, significant part of electricity is imported mainly from Russia. Based on electricity usage future forecasts, the power balance will not be sufficient to secure stable and uninterrupted supply during peak hours. Consequently, Visaginas nuclear power plant generated electricity will have clear realization market.  The modeled enterprise discounted cash flow valuation shows the nuclear power plant project in Lithuania will be loss-making, therefore to finance it through IPO is impossible. Project Net Present Value given 10% discount rate is -2.602,11 mln. EUR. Internal Rate of Return equals to 6,61%. Electricity generation costs – 6,19 EUR c/KWh. |
