IDICO reveals criteria for strategic investors

IDICO is preparing to enlist strategic shareholders before its coming IPO

This is one of IDICO’s criteria to select strategic investors. There are a number of other major criteria. Domestic enterprises must have an equity of at least VND1.5 trillion ($66.08 million) or $68 million for foreign enterprises as the end of 2016. Additionally, enterprises must not have overdue debts, accumulated looses, and bad debts.

In June this year, IDICO secured the prime minister’s approval of its equitisation plan. Accordingly, the company is permitted to reduce its state ownership to 36 per cent from the current 100 per cent.

Notably, IDICO will put a 45 per cent stake on sale to strategic investors. Besides, IDICO will offer 53.3 million shares, equalling an 18.44 per cent stake, at its upcoming initial public offering (IPO) at an initial price of VND10,000 ($0.44) per share.

The date of the IPO is yet to be set, but it will most likely be held this year or next year at the latest, as the government will also offload its 36 per cent controlling stake in IDICO after December 31, 2018.

According to its accumulated financial report for the first six month of this year, IDICO earned VND620.02 billion ($27.3 million) in revenue, five times as much as in the same period of 2016.

It 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), including 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.