Vietnam Urban and Industrial Zone Development Investment Corporation (IDICO) sold its entire offering of more than 55.3 million shares in an initial public offering at the HCM Stock Exchange. (Photo: cafef.vn) Hanoi (VNS/VNA) –The Vietnam Urban and Industrial Zone Development Investment Corporation(IDICO) sold its entire offering of more than 55.3 million shares in an initialpublic offering at the Ho Chi Minh Stock Exchange on October 5.
IDICO auctioned 55.3million shares, equivalent to 18.44 percent of its charter capital, at the initialprice of 18,000 VND (0.79 USD) per share. A total of 656 investors participatedin the auction. Total bidding amounted was 269.3 million shares, five timeshigher than the total offering.
All the shares were sold atan average of 23,940 VND per share. Foreign investors purchased 41.35 million,equal to 75 percent of total shares.
IDICO has charter capitalof 3 trillion VND (132.2 million USD), equivalent to 300 million shares. Underthe equitisation plan, the State will retain a 36 percent stake in IDICO whilethe amount sold to the public amounted to 55.3 million shares, or 18.44 percentof its capital.
Another 135 million shares,or a 45 percent stake, will be offered to strategic investors.
The Government plans todivest entirely from IDICO by the end of 2018.
In the lead-up to the sale,IDICO CEO Nguyen Van Dat said 12 investors had expressed interest in becomingstrategic partners. Kinh Bac City Development Share Holding Corporation,Bitexco Group and SSG Corporation have submitted documents and made deposits.
IDICO’s representative saidall three companies could become strategic partners if total bidding was lowerthan a 45 percent stake. If the total bidding is higher than 45 percent, thecompany will organise an auction with the initial price being set higher thanthe average winning price in the IPO.
The most importantcriterion for selecting strategic investors is that investors must haveexperience in at least one of the three core business lines of IDICO, includingconstruction of technical infrastructure in industrial zones and transport;electricity production and trading; and construction and development of urbanand residential areas.
Prospective investors musthave total assets of at least 2.5 trillion VND and owner’s equity of at least 1.5trillion VND. They must have enough financial capacity to buy at least 15 percentof IDICO’s charter capital.
IDICO’s representative saidthe company’s next development strategy would depend much on its strategicpartners.-VNA
VNA
