Ministry of Construction to withdraw all State capital from IDICO
The Ministry of Construction recently approved a plan to divest all State capital at Việt Nam Urban and Industrial Zone Development Investment Corporation (IDICO).
The Ministry of Construction recently approved a plan to divest all State capital at Viet Nam Urban and Industrial Zone Development Investment Corporation (IDICO).
The divestment volume is 108 million shares, equivalent to 36 per cent of IDICO’s charter capital.
The shares will be sold via a public auction at the Ho Chi Minh City Stock Exchange.
The divestment goal in IDICO is to reduce the State ownership rate from 36 per cent to 0 per cent.
The corporation must divest before November 30 and if it does not complete the divestment, it must complete the transfer to the State Capital Investment Corporation before December 31.
The starting price is VND26,930 (more than US$1) per share, meaning VND2.9 trillion is expected to be collected. However, if its reference price in 30 consecutive sessions before the announcement date is higher than VND26,930 per share, then the average 30-day reference price will be used as the starting price.
IDICO was established in 1994 under the Ministry of Construction and is currently investing in research and development of 10 industrial park projects nationwide with an area of 3,270 hectares, mainly in the south. It also operates in power supply, transportation, construction and other sectors.
IDICO has a charter capital of VND3 trillion, is the eighth-largest enterprise with capital on the HNX. It made its initial public offering (IPO) in October 2017 and sold 55.3 million shares.
After that, the corporation put its shares on UPCoM on November 24, 2017, with the reference price on the first trading day of VND23,940 per share. IDICO shares moved to HNX from December 10 at a reference price of VND18,500 per share.
During the equitisation process, IDICO offered to sell shares to two strategic shareholders, SSG Group and Bitexco Group, which both own 65 million shares, making up for 22.5 per cent of charter capital.
The corporation has an annual turnover of nearly VND5 trillion. Profit after tax is quite volatile, reaching VND477 billion last year. Total assets are more than VND14.5 trillion. — VNS
