IDICO offers IPO share volume for foreign investors

September 09, 2017 | 10:40

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Foreign investors can register to buy the entire offered share volume, equalling 55.3 million shares, in one of Vietnam's leading urban and industrial zone developers, Vietnam Urban and Industrial Zone Development Investment Corporation (IDICO), in its upcoming initial public offering (IPO).

55.3 million shares will be put on sale, all available for foreign investors

IDICO has published the specifics of its IPO on its website. Accordingly, the company will offer 55.3 million shares for sale, equalling an 18.44 per cent stake, with the initial price of VND18,000 ($0.8).

The auction will be conducted on October 5, 2017 at the HoSE. Organisations and individuals satisfying the conditions stipulated by IDICO’s regulations on public share auction can join.

Interested investors will need to submit their application to participate in the auction before 3 PM on October 3 to the Ho Chi Minh City Stock Exchange (HoSE).

The investors can register to buy at least 100 shares or the entire volume on offer. The investors will have to pay a deposit of 10 per cent of the total value of the subscribed shares based on starting price.

Along with the shares put on sale at its IPO, IDICO will put a 45 per cent stake on sale to strategic investors.

Previously, IDICO published the criteria for enterprises who are looking to become IDICO’s strategic investors.

Accordingly, domestic enterprises need to have at least VND2.5 trillion ($110.1 million), $115 million for foreign investors, chartered capital as of the end of 2016. Domestic enterprises must have an equity of at least VND1.5 trillion ($66.08 million) or $68 million for foreign enterprises as of the end of 2016. Additionally, enterprises must not have overdue debts, accumulated losses, and bad debts.

After these sales, the government will also offload its 36 per cent controlling stake in IDICO after December 31, 2018.

IDICO is currently investing in, managing, and operating 17 industrial zones nationwide, with a total area of 7,000 hectares and investment capital of about VND10 trillion ($440.5 million). The industrial zones in IDICO’s portfolio include Nhon Trach I and Nhon Trach 5 in the southern province of Dong Nai, My Xuan A, My Xuan B1, and Phu My II in the southern province of Ba Ria-Vung Tau, Kim Hoa in the northern province of Vinh Phuc, Cau Nghin in the northern province of Thai Binh, and Que Vo 2 in the northern province of Bac Ninh.