The Industrial Investment and Development Corporation - Becamex IDC (code: BCM) has announced a roadmap to offer an additional 300 million shares to the public via auction. Accordingly, the auction will be held regularly at the Ho Chi Minh City Stock Exchange (HoSE) at 9:00 a.m. on April 28, 2025.
With a starting price of VND69,600/share, the minimum value of the auction is nearly VND21,000 billion. This is the auction with the most "huge" value since the period of explosive state capital divestment in 2016 - 2018 to date.
Participants include domestic and foreign organizations and individuals who meet the conditions in the BCM Stock Auction Regulations. The minimum registered number is 100 shares and the maximum is 300 million shares. The time to register to buy at dealers is from February 25, 2025 to 16:00 on April 21, 2025.
The Corporation currently has the largest shareholder, Binh Duong Provincial People's Committee, holding 95.44% of capital. According to Decision 426 approving the State capital holding ratio at Becamex IDC by 2025, the State capital ratio will be adjusted from 95.44% to no less than 65% of capital. As of the end of 2024, the company's charter capital was VND 10,350 billion and equity capital was VND 20,480 billion. If the auction is successful, the charter capital will increase to VND13,350 billion and the equity will double to more than VND41,000 billion.
With the proceeds from the stock offering, Becamex IDC plans to use over VND8.4 trillion to build the expanded Cay Truong and Bau Bang industrial parks, contributing to the Vietnam - Singapore Industrial Park Joint Venture (VSIP). Becamex IDC also wants to use nearly 4.3 trillion VND of mobilized capital to repay principal loans from banks. These are mainly short-term loans, according to information from the financial statements.
It can be seen that industrial real estate tycoon is mobilizing huge capital in the context of Vietnam expecting to benefit from the wave of production shift being promoted more strongly in the second term of US President Donald Trump. However, according to investors, global economic instability can cause risks for businesses such as declining demand for industrial park real estate rental and slow progress in industrial park project implementation.
Meanwhile, Becamex IDC itself has a high debt/equity ratio, large debt scale and low investment efficiency of BCM are also factors that make investors worried. That is also part of the reason why Becamex IDC has witnessed 2 unstable stock listings in the period from late 2017 to early 2018, when the successful offering volume only reached 6% at the price of 31,000 VND/share.
The 2024 financial report just released by Becamex IDC shows that in the fourth quarter of 2024, Becamex IDC recorded net revenue of nearly VND 2,000 billion, down 60% over the same period, due to the main revenue from real estate business and investment real estate decreasing by 71%, to more than VND 1,334 billion; while construction revenue was nearly VND 183 billion, 8.7 times higher.
Accumulated for the whole year, net revenue was over VND 5,195 billion, down 34% and profit was over VND 2,105 billion, down 13% compared to the previous year. Compared to the plan, the giant of Binh Duong Industrial Park has only implemented 60% and 98%, respectively.
As of the end of the fourth quarter of 2024, Becamex IDC's repayment debt was nearly VND38,298 billion, up 13%. Of which, total short- and long-term loans were over VND23,600 billion, up 20% and accounting for 62% of total loans. The majority are bond debt of more than VND 12,700 billion, with nearly VND 800 billion of bonds due for repayment. That shows that the capital demand for Becamex IDC's debt repayment is currently very large.
