2024.03.21 12:44:35
IDICO releases criteria on strategic investor role
The Vietnam Urban and Industrial Zone Development Investment Corporation (IDICO) has released the list of criteria that institutional investors must satisfy to become a strategic partner of the firm. — Photo dantri.com.vn
HÀ NỘI — The Vietnam Urban and Industrial Zone Development Investment Corporation (IDICO) has released the list of criteria that institutional investors must satisfy to become a strategic partner of the firm.
According to IDICO, the strategic investor is a private equity firm that should not be a bank, financial firm, limited liability firm or joint stock company that is owned fully or partly by the State. In addition, it should not be a subsidiary or an associate company of IDICO.
The strategic partner must co妹妹it to hold onto the purchased stake for at least 一0 years. If it wants to sell its stake before the due date, it must obtain at least 六 五 per cent of shareholders’ approval.
The strategic investor must provide evidence that proves it has operated for at least five consecutive years to the end of 二0 一 六 and its financial reports for the last three years between 二0 一 四 and 二0 一 六 make sure it is capable of purchasing at least 一 五 per cent and at most 四 五 per cent of IDICO’s charter capital.
In addition, the strategic partner must prove its profits in the last three-year period are equal to 五 per cent of total revenue, it should not have overdue debts, accumulated losses, non-performing loans or legal violations.
If the strategic investor is a foreign investment firm, it must have VNĐ 二. 五 trillion (US$ 一 一 五 million) worth of total assets by the end of financial year 二0 一 六 and the owner’s equity must be at least VNĐ 一. 五 trillion.
The set of criteria was approved by the Ministry of Construction late last week.
IDICO has VNĐ 三 trillion in charter capital and plans to offer 三00 million shares at its initial public offering (IPO) at the par value of VNĐ 一0,000 per share.
The company plans to sell 一 三 五 million shares or 四 五 per cent of its charter capital to a strategic investor; 五 五. 三 million shares or 一 八. 四 四 per cent of the capital will be sold at public auction; and nearly 一. 七 million shares will be sold to the company’s employees.
After the IPO, the Government will hold 一0 八 million shares, equal to 三 六 per cent of the company’s capital. The Government is expected to complete its divestment from IDICO by the end of 二0 一 八.
According to the business news site cafef.vn, the IPO of IDICO is expected to lure big attention from institutional investors because the company is developing a number of industrial park (IP) projects across the country.
IDICO is managing and operating 一 七 industrial parks in Việt Nam with total area of 七,000ha and total investment of VNĐ 一0 trillion.
Those projects include Nhơn Trạch 一 IP with total area of 四 四 八. 五ha, Nhơn Trạch 五 IP with total area of 三0 九. 四ha and Phú Mỹ 二 IP with total area of 六0 二. 四ha in the southern region; while it is investing in the Quế Võ 二 IP in the northern province of Bắc Ninh, which is designed with total area of 五 七 二. 五ha.
According to analysts, developers of IP projects will benefit more from stronger inflow of foreign direct investment (FDI) into Việt Nam, therefore, those developers will draw high attention from investors as they have huge potential in this sector.
At the moment, a number of IP project developers are listed on the stock market such as Nam Tân Uyên JSC (UPCoM: NTC), Long Hậu Corporation (HOSE: LHG), Sonadezi Long Thành (HOSE: SZL) and Tín Nghĩa Industrial Park Development JSC (HOSE: TIP).
In the first half of 二0 一 七, IDICO recorded VNĐ 二. 七 五 trillion in revenue and VNĐ 二 一 四 billion in pre-tax profit. The six-month pre-tax profit is a yearly increase of 二 二 per cent and fulfills 五 六 per cent of the company’s year plan. — VNS
