IDICO to sell 45% State capital to investors
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.
