Vietnam’s IPO Digest: Vinaconex sets preference price; Becamex misses target

Vietnam is pushing its divestment progress after several delays. The country might not be able to reach its target of privatising 44 state companies this year, but there are some interesting opportunities by the end of 2017, including construction company Vinaconex. Meanwhile, one of the most expected IPO, that of the country’s top industrial park developer Becamex, has failed to lure buyers.

Vinaconex sets IPO price at $1.13, to raise $108.4m

Vietnam will sell a 21.8 per cent stake of its construction major Vinaconex at VND25,600 ($1.13) apiece in a public auction, looking to raise at least $108.4 million.

The preference price, announced on Tuesday, is pegged to stock price closing on Vinaconex’s roadshow day nearly two weeks ago.

DEALSTREETASIA reported earlier that the State Capital Investment Corporation (SCIC), the state investor which is also holding major minority stake at Vinamilk, will sell Vinaconex shares on December 8.

SCIC will retain a 36 per cent ownership in the construction company after the disposal. The sovereign fund said it will also complete divestments from Tien Phong Plastics (in which it has 37.1 per cent), Binh Minh Plastics (29.51 per cent), medical equipment distributor Domesco (34.71 per cent) and FPT Corporation (5.96 per cent), next month.

Vinaconex’s shares were changed hands at VND26,300 apiece Tuesday morning.

Also read:

Vietnam to offload 21.8% of construction major Vinaconex on Dec 8

Investors subscribe to 6% of Becamex’s 23.6% offer

Binh Duong-based property giant Becamex Corporation failed to attract potential buyers for its ambitious $423-million IPO slated for December 1 as investors have subscribed to only 6 per cent of the offered shares.

The company had proposed to sell a 23.6 per cent equity, or more than 311 million shares, at the starting price of VND31,000 per share. However, investors registered to buy only 18.95 million shares, or a tiny 1.4 per cent equity, according to a latest announcement by the Ho Chi Minh City Stock Exchange.

Becamex’s offer was anticipated to become the second largest domestic IPO. The biggest transaction was carried out by Vietcombank 10 years ago when the government truncated $500 million shares.

Becamex said it will sell 25 per cent to strategic shareholders following the IPO. However, the company has not shed light on who will be its strategic investors. Along with the controlling interest at 51 per cent for the state post the IPO, the offer was said to be unattractive also because of the high valuation.

In addition, IPO and listing are different processes in Vietnam. It is not clear when the leading industrial park developer will go public.

Also read:

Vietnam’s industrial park major Becamex IDC to raise $423m in IPO