Illustrative image (Source: Internet) Hanoi (VNS/VNA) - The Vietnam Urban and Industrial ZoneDevelopment Investment Corporation (IDICO) has released the list of criteriathat institutional investors must satisfy to become a strategic partner of thefirm.
According to IDICO, the strategic investor is aprivate equity firm that should not be a bank, financial firm, limitedliability firm or joint stock company that is owned fully or partly by theState. In addition, it should not be a subsidiary or an associate company ofIDICO.
The strategic partner must commit to hold ontothe purchased stake for at least 10 years. If it wants to sell its stake beforethe due date, it must obtain at least 65 percent of shareholders’ approval.
The strategic investor must provide evidencethat proves it has operated for at least five consecutive years to the end of2016 and its financial reports for the last three years between 2014 and 2016make sure it is capable of purchasing at least 15 percent and at most 45 percent of IDICO’s charter capital.
In addition, the strategic partner must proveits profits in the last three-year period are equal to 5 percent of totalrevenue, it should not have overdue debts, accumulated losses, non-performingloans or legal violations.
If the strategic investor is a foreigninvestment firm, it must have 2.5 trillion VND (115 million USD) worth of totalassets by the end of financial year 2016 and the owner’s equity must be at least 1.5 trillion VND.
The set of criteria was approved by the Ministryof Construction late last week.
IDICO has 3 trillion VND in charter capital andplans to offer 300 million shares at its initial public offering (IPO) at thepar value of 10,000 VND per share.
The company plans to sell 135 million shares or45 percent of its charter capital to a strategic investor; 55.3 million sharesor 18.44 percent of the capital will be sold at public auction; and nearly 1.7million shares will be sold to the company’s employees.
After the IPO, the Government will hold 108million shares, equal to 36 percent of the company’s capital. The Governmentis expected to complete its divestment from IDICO by the end of 2018.
According to the business news site cafef.vn, the IPO of IDICO is expected to lure bigattention from institutional investors because the company is developing anumber of industrial park (IP) projects across the country.
IDICO is managing and operating 17 industrialparks in Vietnam with total area of 7,000ha and total investment of 10trillion VND.
Those projects include Nhon Trach 1 IP withtotal area of 448.5ha, Nhon Trach 5 IP with total area of 309.4ha and Phu My 2IP with total area of 602.4ha in the southern region; while it is investing inthe Que Vo 2 IP in the northern province of Bac Ninh, which is designed withtotal area of 572.5ha.
According to analysts, developers of IP projectswill benefit more from stronger inflow of foreign direct investment (FDI) intoVietnam, therefore, those developers will draw high attention from investorsas they have huge potential in this sector.
At the moment, a number of IP project developersare listed on the stock market such as Nam Tan Uyen JSC (UPCoM: NTC), Long HauCorporation (HOSE: LHG), Sonadezi Long Thanh (HOSE: SZL) and Tin NghiaIndustrial Park Development JSC (HOSE: TIP).
In the first half of 2017, IDICO recorded 2.75 trillion VND in revenue and 214 billion VND in pre-tax profit. The six-monthpre-tax profit is a yearly increase of 22 percent and fulfills 56 percent ofthe company’s year plan.-VNA
According to IDICO, the strategic investor is aprivate equity firm that should not be a bank, financial firm, limitedliability firm or joint stock company that is owned fully or partly by theState. In addition, it should not be a subsidiary or an associate company ofIDICO.
The strategic partner must commit to hold ontothe purchased stake for at least 10 years. If it wants to sell its stake beforethe due date, it must obtain at least 65 percent of shareholders’ approval.
The strategic investor must provide evidencethat proves it has operated for at least five consecutive years to the end of2016 and its financial reports for the last three years between 2014 and 2016make sure it is capable of purchasing at least 15 percent and at most 45 percent of IDICO’s charter capital.
In addition, the strategic partner must proveits profits in the last three-year period are equal to 5 percent of totalrevenue, it should not have overdue debts, accumulated losses, non-performingloans or legal violations.
If the strategic investor is a foreigninvestment firm, it must have 2.5 trillion VND (115 million USD) worth of totalassets by the end of financial year 2016 and the owner’s equity must be at least 1.5 trillion VND.
The set of criteria was approved by the Ministryof Construction late last week.
IDICO has 3 trillion VND in charter capital andplans to offer 300 million shares at its initial public offering (IPO) at thepar value of 10,000 VND per share.
The company plans to sell 135 million shares or45 percent of its charter capital to a strategic investor; 55.3 million sharesor 18.44 percent of the capital will be sold at public auction; and nearly 1.7million shares will be sold to the company’s employees.
After the IPO, the Government will hold 108million shares, equal to 36 percent of the company’s capital. The Governmentis expected to complete its divestment from IDICO by the end of 2018.
According to the business news site cafef.vn, the IPO of IDICO is expected to lure bigattention from institutional investors because the company is developing anumber of industrial park (IP) projects across the country.
IDICO is managing and operating 17 industrialparks in Vietnam with total area of 7,000ha and total investment of 10trillion VND.
Those projects include Nhon Trach 1 IP withtotal area of 448.5ha, Nhon Trach 5 IP with total area of 309.4ha and Phu My 2IP with total area of 602.4ha in the southern region; while it is investing inthe Que Vo 2 IP in the northern province of Bac Ninh, which is designed withtotal area of 572.5ha.
According to analysts, developers of IP projectswill benefit more from stronger inflow of foreign direct investment (FDI) intoVietnam, therefore, those developers will draw high attention from investorsas they have huge potential in this sector.
At the moment, a number of IP project developersare listed on the stock market such as Nam Tan Uyen JSC (UPCoM: NTC), Long HauCorporation (HOSE: LHG), Sonadezi Long Thanh (HOSE: SZL) and Tin NghiaIndustrial Park Development JSC (HOSE: TIP).
In the first half of 2017, IDICO recorded 2.75 trillion VND in revenue and 214 billion VND in pre-tax profit. The six-monthpre-tax profit is a yearly increase of 22 percent and fulfills 56 percent ofthe company’s year plan.-VNA
VNA
