Leading Vietnamese real estate developer offers 311.2 million at IPO

October 31, 2017 | 11:02

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Becamex IDC Corporation—one of Vietnam’s leading property developers—plans to put 311.2 million shares, equaling 23.6 per cent of its chartered capital, on sale at its initial public offering (IPO), which is expected to be organised on December 1.

An industrial park implemented by Becamex IDC

The Ho Chi Minh Stock Exchange has announced Becamex IDC’s plan to conduct its IPO. Accordingly, Becamex IDC will offer 311.2 million shares at the initial price of VND31,000 ($1.36) apiece. The company expects to acquire VND9.65 trillion ($423.1 million) from the deal.

Along with the IPO, the company will also offer 329.25 million shares to strategic shareholders.

Afterwards, the state-owned holding will decrease to 51 per cent stake.

In recent time, the auctions of real estate developers’ share holdings have been luring in numerous investors, especially from overseas.

Notably, two outstanding deals include Viglacera Corporation JSC and Vietnam Urban and Industrial Zone Development Investment Corporation (Idico).

In late July, Viglacera conducted an auction of 30 million shares. 19 organisations and individuals joined the auction with the total registered shares numbering at 82.33 million, doubling the volume on offer. Foreign investors purchased 15.49 million shares, equaling 52 per cent of the offered shares.

At Idico’s IPO, the corporation put 55.3 million shares on sale. The event attracted the participation of 582 domestic individuals, 25 domestic organisations, 40 international organisations, and nine foreign individuals, with the total registered share volume of 269.82 million, five times as much as the offered volume.

Foreign investors succeeded in acquiring 41.35 million out of the 55.3 million offered shares, equaling 74.8 per cent.

IDICO earned VND1.32 trillion ($57.98 million) from the IPO, selling 55.3 million shares at the average buying price of VND23,940 ($1.05) apiece. The lowest winning bid was VND23,200 ($1.02) and the highest VND28,600 ($1.26).

According to the latest move, on October 31, Thanh Le General Import-Export Trading Corporation will conduct the public auction of 11.8 million shares, with the initial price of VND10,600 ($0.47) apiece. As of now, the registered shares are five times higher than the offered shares.

Back to Becamex IDC, it is known as a leading name in the development of industrial, residential, urban, and transportation infrastructure in Vietnam.

It currently has 28 subsidiaries and joint ventures in the areas of securities, finance, insurance, banking, construction, trading, real estate, services, telecommunication-information technology, concrete production, construction materials, mining, pharmaceuticals, healthcare, and education with a chartered capital of approximately VND5.5 trillion ($242.1 million).