Becamex IDC to hold Vietnam’s 2nd-biggest IPO. (Photo: becamexbce.com) Hanoi(VNA) — The Investment and IndustrialDevelopment Corporation (Becamex IDC) will float over 311.2 million shares,equivalent to 23.63 percent of its charter capital, in its initial public offering(IPO) on December 1 on the HCM Stock Exchange.
The initial price is set at 31,000 VND (1.37 USD)per share, the company has announced in a public statement.
At this price, the company is valued at 40.83trillion VND (1.8 billion USD) and expected to collect at least 9.65 trillionVND from the share sale.
This is the second-largest IPO of a State-ownedenterprise in the past 10 years since the Vietcombank’s IPO worth 10.5 trillionVND on December 26, 2007.
Established in 1976, Becamex IDC is one of thebiggest real estate companies in Vietnam, focusing on developing industrial,residential, urban and transportation infrastructure.
Under the equitisation plan approved by thePrime Minister, the State will retain 51 percent of the company’s charter capitalworth 13.17 trillion VND.
About 23.63 percent will be offered in anauction to the public while 4.94 million shares, equivalent to 0.37 percent,will be sold to its employees. The remaining shares (about 25 percent) will betendered to strategic investors after the IPO.
The IPO is open to both domestic and foreignindividuals and institutions.
Becamex has 28 subsidiaries operating insecurities, finance, insurance, banking and construction, as well real estate,telecommunications and information technology, besides concrete production,construction materials, mining, pharmaceuticals, healthcare and education.
The company owns four major industrial parks,including My Phuoc Residential and Industrial Park, Vietnam–SingaporeIndustrial Park, Bau Bang Residential and Industrial Park, and Binh Duong NewTownship of Industry, Service and Residential.
Rising foreign interest
Recently, foreign investors have showed stronginterest in shares of infrastructure development companies, via trades on bothstock exchanges and public auctions.
Foreign investors spent a net value of 315billion VND to purchase shares of Viglacera Corporation (VCG) and 151 billion VNDfor shares of Tasco JSC (HUT) on the Ha Noi Stock Exchange in the first ninemonths.
They also paid nearly 2 trillion VND to purchasemajority shares of these two companies in their public share auctions orprivate placements.
In the IPO of Vietnam Urban and Industrial ZoneDevelopment Investment Corporation (IDICO) on October 5, foreign investors alsopicked up 41.3 million shares, equivalent to 74.8 percent of its totaloffering, at the average winning price of 23,940 VNDper share, a 33.3 percenthigher than the initial price.
Besides the expectation of business improvementof State-owned companies after equitisation, some analysts have saidinfrastructure development firms are usually large-scaled companies with stableoperations, meeting the investment criteria of some foreign investment funds. -VNA
VNA
