State-owned infrastructure developer to IPO

December 17, 2014 | 17:01

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Infastructure Development and Construction Corporation (LICOGI) has announced its plan to sell a 25 per cent stake for its upcoming initial public offering.

LICOGI has a registered capital of VND900 billion ($42.3 million). For the IPO the state intends to keep 36 million shares, a 40 per cent stake, while 1.168 million shares or 1.3 per cent will be put up for sale to employees, 63,000 shares, 0.07 per cent will be sold to the labour union, 31.5 million shares, 35 per cent, are slated for sale to strategic investors, and 21.27 million shares, 23.63 per cent, will go on sale to the public.

The minister of construction has been authorised by the prime minister to decide the initial price of the shares and choose the financial firm that will advise LICOGI on its IPO and the strategic investors.

After the IPO, LICOGI will have to rent land from the government and pay the necessary fees to transfer its ownership of land, according to the Land Law. According to a recent report by the State Audit of Vietnam, LICOGI’s property holdings total 3.4 million square metres, part of which has been reportedly misused.

By By Khanh Tran

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