Portrait of a giant VSIP planning to IPO: Managing 8,000 hectares, a steady profit of several trillion per year
According to the leaders of the Industrial Development and Investment Corporation (Becamex IDC, HoSE: BCM) at the 2022 Annual General Meeting of Shareholders, in the future, VSIP Joint Venture will be IPO to raise the level of development.
It is known that the Vietnam – Singapore Industrial Park (VSIP) joint venture is the largest joint venture of Becamex IDC in cooperation with Singapore’s Sembcorp Group. Becamex IDC invested in this joint venture at the original cost of VND 461 billion, equivalent to 49% of the capital. This investment has been re-evaluated according to the decision approving the enterprise value to equitize the corporation at VND 1,295 billion.
As of March 31, 2022, the carrying value of this investment under the equity method is VND5,234 billion.
Regarding business results in 2021, VSIP’s after-tax profit reached VND 1,795 billion, up 25% compared to 2020 – leading in profit of industrial park real estate businesses. Joint venture equity reached 12,326 billion VND.
In addition, on July 20, 2021, VSIP issued a lot of 10,000 VJVCH2128001 bonds with a total value of VND 1,000 billion. This is a batch of non-convertible bonds, without warrants and without collateral, with a fixed interest rate of 9%/year.
The company is expected to use it for investment purposes in VSIP III – Binh Duong and VSIP Nghe An projects (800 billion); Electricity production and business activities (200 billion). However, at present, the company has only disbursed 51.3 billion dong for electricity production and business activities.
VSIP is one of the largest industrial park real estate developers in Vietnam and operates 8 industrial parks including VSIP Binh Duong I (500ha) and II (2,045ha); VSIP Bac Ninh (700ha); VSIP Hai Phong (1,600ha); VSIP Quang Ngai (915ha); VSIP Hai Duong (150ha); VSIP Nghe An (750ha), Becamex VSIP Binh Dinh (1,374ha). The total area of these industrial parks is more than 8,000 hectares.
On March 19, VSIP also held a groundbreaking ceremony for the third industrial park project in Binh Duong province with a scale of 1,000 hectares.
In addition, VSIP is also developing urban areas Sun Casa (Binh Duong), The Habitat (Binh Duong), Thien My Loc (Quang Ngai), Casa Flora (Nghe An), Bell Home (Hai Phong).
According to information announced by VSIP, so far this joint venture has attracted USD 15 billion in foreign investment, serving about 880 customers from 30 countries and territories.
VSIP properties. Source: Sembcorp
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