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IDICO IPO set for October 5

Released at: 14:23, 08/09/2017

IDICO IPO set for October 5

Photo: IDICO

Vietnam Urban and Industrial Zone Development Investment Corporation to auction 55.3 million shares at a starting price of $0.8 each.

by Quynh Nguyen

Vietnam’s leading developer of industrial zones and urban areas, Vietnam Urban and Industrial Zone Development Investment Corporation (IDICO) plans to conduct Initial Public Offering (IPO) on October 5, according to Ho Chi Minh Stock Exchange.

With a chartered capital of VND3 trillion ($132 million) or 300 million shares, IDICO will hold an auction of 55.3 million shares with a starting price of VND18,000 ($0.8) per share.

Investors who are economic organizations, social organizations and individuals both local and foreign and eligible as required by law will be allowed to participate in the auction.

IPO of the IDICO is expected to attract much attention of investors because the company holds  a number of subsidiaries specializing in infrastructure investment such as industrial parks, electricity, transportation, construction, and urban area.

According to the approved equitization plan, the State will only own 108 million shares, equivalent to 36 per cent of the charter capital. In addition to the public offering, IDICO intends to offer strategic investors 135 million shares, equivalent to 45 per cent of charter capital.

The State is expected to withdraw all capital at IDICO on December 31, 2018. Therefore, investors who become strategic investors of the IDICO’s upcoming IPO will be more likely to take control of IDICO after the State’s divestment.

IDICO's Equitization Steering Committee recently required that IDICO's strategic shareholder to have a total asset of at least VND2.5 trillion ($110 million) and equity of VND1.5 trillion ($66 million) at the end of the financial year.  

Minimum profit is equal to 5 per cent of turnover in the last 3 years prior to the time of registration as a strategic investor of IDICO. The financial situation at the time of application has no overdue debt and accumulated losses, no bad debt and do not break the law.

Investors must immediately deposit 20% of the value of shares when registered to buy at the reserve price. In addition, IDICO's subsidiaries, affiliates and companies will not be allowed to subscriber to become strategic investors.  

IDICO is managing and operating 17 industrial parks in Vietnam with total area of 7,000 ha and total investment of VND10 trillion ($440 million).  

In the first half of 2017, IDICO recorded VND2.75 trillion ($121 million) in revenue and VND214 billion ($9.4 million) in pre-tax profit. The six-month pre-tax profit is a yearly increase of 22 per cent and fulfills 56 per cent of the company’s year plan. 

 

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