Real Estate Giant – Becamex IDC offers 311.2 million shares at IPO

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

The Ho Chi Minh Stock Exchange has announced Becamex IDC’s plan to conduct its IPO. The property giant 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. The company will also offer 329.25 million shares to strategic shareholders alongside the IPO. Afterwards, the state-owned holding will decrease to 51 percent stake.

Recently, the auctions of real estate developers’ share holdings have been luring in numerous investors especially from overseas. 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 which doubled the volume on offer. Foreign investors purchased 15.49 million shares, equaling 52 percent of the offered shares.

While 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 which was 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 percent. 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.

Becamex IDC Corporation 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).

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