The state office has passed an equitization plan for the Infrastructure Development and Construction Corporatio (Licogi) in which, the government will reduce its ownership in the company to 40 per cent and issue extra shares to increase capital.
In particular, Licogi will have 90 million shares equivalent to 100 per cent equity stake, whereas 36 million shares held by the state. The remaining shares will be sold by auction to strategic investors (31.5 million shares), individual investors (21.2 million) and approximately 1.2 million shares will be offered as preferred shares to the union, employees of Licogi. Starting price per share is expected to be at VND 10,000.
The sale of shares is part of government’s accelerated privatisation drive that might see listing of more than 400 state entities by the end of 2015. Already, about 15 state companies will be listed on the HNX, this month. Of which, the PetroVietnam Camau Fertilizer Ltd (PVCFC) is the largest IPO, followed by the IPO of sea food producer Seaprodex. Similarly, about five state-owned enterprises auctioned their shares in November.
In November, a member of Licogi group has co-operated with Japan Sunimoto Corporation on a project to develop Northern Thang Long Industrial Complex which is spread over 300 hectares. There have been 61 projects with 100 per cent investment totaling $662.3 million in this complex.
Licogi is a state-owned company that operates under the Ministry of Construction since the 1960s. The company specializes in the construction works, infrastructure projects and execution of large projects relating to economy, national defense of the country. Licogi has 33 subsidiaries in its network and employs around 8000 architects, engineers and skilled workers.
The plan to equitize Licogi will be finalised by Ministry of Finance and pass down to the Ministry of Planning and Investment for execution.