IDICO to sell 45% State capital to investors

Jun 7th at 10:53
07-06-2017 10:53:46+07:00

IDICO to sell 45% State capital to investors

The Prime Minister has approved the equitisation plan to offload the State’s capital in the Viet Nam Urban and Industrial Zone Development Investment Corporation (IDICO).

 

The company, with a charter capital of VND3 trillion (US$133.3 million), will offer up to 300 million shares in the initial public offering (IPO) at a par value of VND10,000 per share.

The upcoming IPO will reduce the State’s ownership in IDICO from 100 per cent to 36 per cent, equal to 108 million shares.

The Government will remain a shareholder of IDICO until December 31, 2018, and offload its entire stake in the company after this date.

In the IPO, strategic investors will be able to purchase up to 45 per cent of capital in IDICO, or 135 million shares; 18.4 per cent of capital, or 55.3 million shares, will be sold publicly, and the remaining stake will be transferred to the company’s employees at a preferential price.

The PM has also asked the Minister of Construction to develop the standards to select the strategic investor in accordance with the Government’s Decree 58/2011/ND-CP dated July 18, 2011, converting 100 per cent State-owned enterprises to joint-stock companies.

The construction ministry has also been requested to transfer its representative State ownership in IDICO to the State Capital Investment Corporation (SCIC).

IDICO plans to earn a total revenue of VND5 trillion and a pre-tax profit of VND384 billion for 2017, down 52.5 per cent and 14.4 per cent, respectively, from the 2016 figures.

IDICO is one of the five constructions and building material corporations that hold large-valued assets and need to cut the State’s ownership in their capital to below 51 per cent by 2019, in accordance with the Government’s plan to reduce its stake in State-owned enterprises between 2016 and 2020.

Another such company is the Housing and Urban Development Corporation (HUD). The Government will remain as controlling shareholder of HUD until the end of 2020 with a 51 per cent stake and offload its entire stake in HUD after 2020.

The construction ministry has recently submitted an equitisation plan for HUD to the Government, which values HUD at VND10.94 trillion, including the State capital of VND3.4 trillion.

The construction ministry plans to issue around 340 million shares in the company’s IPO at a par value of VND10,000 per share.

The State’s ownership in HUD is projected at 173 million shares, equal to 51 per cent of the company’s capital.

Strategic investors will be able to buy 85.1 million shares, or a quarter of the charter capital; 80.68 million other shares (23.7 per cent of capital) will be sold to the public, and the remaining stake will be issued to employees.

bizhub



NEWS SAME CATEGORY

Vietnam refinery operator valued at $3.2 bln ahead of IPO

Vietnam's sole refinery operator Binh Son Refinery (BSR) said on Thursday it has been valued at 72.88 trillion dong ($3.21 billion) as at end-2015, as it prepares...

Dung Quat Refinery plans for IPO

Viet Nam’s first oil refinery operator Binh Son Refinery and Petrochemical Co Ltd (BSR) has planned its domestic initial public offering (IPO) with 5-6 per cent of...

Agriculture Corporation to debut IPO in July

Viet Nam General of Agriculture Material Corporation Limited (Vigecam) plans to offer over 6.3 million shares in its IPO on July 19, with the starting price of...

Vinalines holds workshop before IPO

Ahead of its long-awaited initial public offering, state-run Vietnam National Shipping Lines, which is the country’s largest shipping company, last week held a...

PV Power set for August IPO

PetroVietnam Power Corporation (PV Power) decided to make its initial public offering (IPO) this August, the electricity producer announced.

Deputy Minister: VINACAFE equitisation a must

Vietnam National Coffee Corporation (VINACAFE) will begin equitisation in the third quarter of this year, according to Deputy Minister of Agriculture and Rural...

Petrolimex promises HOSE price no lower than $1.7

Petrolimex promised that its stock price will not be lower than VND39,000 ($1.7) per share.Besides, it will not divest entirely from its insurance, finance, and...

Sovico Investment, BS Refining talk equitisation

Investment firm Sovico Holdings is in talks with the Binh Son Refining and Petrochemical Company (BSR Co Ltd) on exploiting opportunities arising out of the...

Kido reports foreign investors lining up for IPO of frozen foods subsidiary

Kido Frozen Foods JSC (KDF) has attracted many foreign investors before its official initial public offering, said Tran Le Nguyen, deputy chairman of mother company...

Petrolimex announces April IPO

The Viet Nam National Petroleum Group (Petrolimex) announced at a shareholder meeting on Wednesday that it will list on the stock market in mid April.


MOST READ


Back To Top