VSIP co-developer Becamex IDC looks to raise $590 mln via share issue

Becamex IDC, a co-developer of the Vietnam-Singapore Industrial Parks (VSIPs), plans to issue 300 million shares to the public, aiming to raise VND15 trillion ($590 million) for project development.

Becamex IDC, which stands for Investment and Industrial Development Corporation, will undertake the share issuance at a minimum price of VND50,000 ($1.96) apiece in 2024-2025, subject to approval from the State Securities Commission, chairman Nguyen Van Hung said at the company’s 2024 AGM held last week.

BCM shares ended up 1.11% at VND63,800 ($2.51) apiece on Tuesday.

Once the issuance is complete, Becamex IDC, listed on the Ho Chi Minh Stock Exchange (HoSE) as BCM, will see its charter capital rise to VND13.35 trillion ($524.4 million).

Given the lackluster share auctions on the stock market since 2017-2018 – with the highest one valued at under VND3 trillion ($117.86 million), BCM’s upcoming move is projected to be a "blockbuster" on the HoSE.

Of the proceeds from the share issuance, VND2.8 trillion ($110 million) will be invested in the Cay Truong industrial park and VND3.5 trillion ($137.5 million) for expanding the Bau Bang IP, both in the southern industrial province of Binh Duong.

BCM will also allocate VND3.63 trillion ($142.76 million) for VSIP projects and its two subsidiaries, Becamex Binh Phuoc and Becamex Binh Dinh. It will use another VND5 trillion ($196.43 million) for financial restructuring.

The IP developer also intends to raise VND1.5 trillion ($58.93 million) from selling bonds through a private placement this year. Last year, Becamex successfully raised a total of VND3.7 trillion ($145.59 million) from bond sales.

In 2024, the company will distribute a cash dividend of 10% (VND1,000 a share), amounting VND1.03 trillion ($40.66 million).

It is targeting VND9 trillion ($353.56 million) in consolidated revenue and VND2.35 trillion ($92.32 million) in net profit in 2024, up 2% and 3% year-on-year, respectively, the AGM heard.

This year, it will begin work on Cay Truong IP; The One Residences residential project, a social housing project within the VSIP No.1 campus; the Dinh Hoa social housing project and a commercial and service area project called A1 central station, all in Binh Duong province.

Besides, it has also set sights on some key transport projects in the province, including the HCMC belt road No.4’s Thu Bien bridge-Sai Gon river section, the HCMC-Thu Dau Mot-Chon Thanh expressway, completion of the My Phuoc-Tan Van road under the public-private partnership format, and the expansion of National Highway No.13.

Becamex IDC is currently 95.44% owned by the Binh Duong People’s Committee. Last month, the government approved a plan to cut its holding in Becamex IDC by 30.44% to 65%.

The firm has emerged as a leading IP developer in Vietnam, with ready-built sites covering 357 hectares in Binh Duong New City.

It runs seven industrial parks (IPs) with a combined area of 4,700 hectares in Binh Duong province, a manufacturing hub in southern Vietnam. The firm is the largest IP owner in the locality, with a 30% plus market share.

In addition, the company holds a 49% stake in Binh Duong-based Vietnam-Singapore Industrial Park JV Company (VSIP), a joint venture with Singapore’s Sembcorp Development. VSIP, with Sembcorp owning a 51% stake, has 12 IPs countrywide, covering over 10,000 hectares in total.