Becamex (BCM) cancels historic share auction amid market downturn

Becamex (BCM) cancels historic share auction amid market downturn

Had it gone through, Becamex IDC stood to raise a minimum of VNĐ20.88 trillion (approximately $808 million), surpassing the VNĐ10.5 trillion raised by Vietcombank in its landmark 2007 auction.

Becamex's building in Bình Dương Province. — Photo courtesy of the company

In what would have been the largest share auction in Việt Nam’s stock market history, Becamex IDC has unexpectedly pulled back its plan to auction 300 million shares on the Hồ Chí Minh Stock Exchange (HoSE). 

The decision, announced just days before the scheduled auction date, has drawn attention and raised questions about investor sentiment and broader market volatility.

Originally slated for April 28, the auction aimed to offer shares at a starting price of VNĐ69,600 per share (US$2.7). Had it gone through, Becamex IDC stood to raise a minimum of VNĐ20.88 trillion (approximately $808 million), surpassing the VNĐ10.5 trillion raised by Vietcombank in its landmark 2007 auction.

According to the official statement, Becamex’s decision was driven by a sharp decline in its share price. BCM shares hit the floor price for four consecutive trading sessions ahead of the auction. 

By mid-April, the market price was nearly on par with the offer price, making the incentive for public investors negligible.

SSI Securities Corporation described this as one of the largest public offerings in Việt Nam’s capital market history. Currently, the Bình Dương Provincial People’s Committee holds more than 95 per cent of Becamex’s charter capital. 

If the entire 300 million BCM shares had been successfully auctioned, the State’s ownership would have been dropped to around 74 per cent. 

The company stated it would reconsider the auction at a more appropriate time, a move seen as an effort to preserve shareholder value and prevent potential undervaluation during a bearish swing.

Becamex emphasised its commitment to aligning with the interests of shareholders and legal regulations, stating that any future offerings would be rescheduled under more favourable market conditions.

The proceeds from the auction were earmarked for major strategic initiatives. Roughly VNĐ6.3 trillion was to be allocated to industrial development projects, including the Cây Trường Industrial Park and the Bàu Bàng expansion.

In addition, it intended to inject VNĐ3.63 trillion into joint ventures and affiliates such as VSIP (Việt Nam–Singapore Industrial Park), Becamex Bình Phước and various energy-focused subsidiaries.

The remainder, over VNĐ5 trillion, was designated for financial restructuring, primarily debt repayment on corporate bonds and bank loans. 

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