Infrastructure developer Idico spends $4.2 mln on electricity production firm

Idico Corporation - JSC, Vietnam's leading industrial park real estate company, has spent VND100 billion ($4.22 million) on setting up an electricity production company.

The new venture called Idergy JSC has a charter capital of VND100 billion, with Idico holding a 99.99% stake and others, 0.01%. It is headquartered on Nguyen Dinh Chieu street, District 3, Ho Chi Minh City.

Idico will appoint Nguyen Van Vu, secretary of its general director, as the representive of a 39.99% stake at Idergy and also head of Idico's group of capital representatives at Idergy.

Vu will be introduced for election to Idergy's board of directors for the period 2022-2027 and hold the position of Idergy's chairman cum general director.

Idico will appoint Nguyen Anh Dung, head of the economic division under Idico's project management board, and Mai Quoc Chinh, head of the technical division under the board to represent a 30% stake of Idico each at Idergy.

In the first six months of the year, Idico recorded a net revenue and after-tax profit of VND4,981 billion ($210 million) and VND1,751 billion ($73.85 million), 2.1 times and 5.1 times year-on-year, respectively.

After the first half, the company had fullfilled 62.5% of the year's revenue target and 79% of the year's profit plan.

As of the end of June, Idico had 13 subsidiaries, three joint ventures and three affiliates. Of these, only two companies specialize in electricity, namely the Idico Urban and House Development Invesment JSC, which mainly operates in electricity business and construction, and Idico Srok Phu Mieng Hydropower JSC, which produces and trades electricity and clean water.

Idico holds a 51% and 51.66% stake at these two companies, respectively.

Idico is listed on the Hanoi Stock Exchange as IDC. Its share was priced at VND52,900 ($2.23) at the closing morning session on September 23.