Becamex plans an IPO for VSIP, list BW Industrial on the exchange

VSIP is the largest joint venture of Becamex IDC in cooperation with Sembcorp Group. It invested in this joint venture at the original cost of VND461 billion, equivalent to 49% of the capital.

With VSIP, Becamex IDC has cooperated with Sembcorp for more than 25 years, developing projects in many provinces such as Bac Ninh, Hai Phong, Quang Ngai, Nghe An.

The cooperation relationship between the corporation and Warburg Pincus were newly established in 2018 through the establishment of a joint venture called BW Industrial Development Joint Stock Company.

Sembcorp and Becamex recently held the groundbreaking ceremony for the third expansion of VSIP Binh Duong III.

The ceremony was witnessed by Vietnam Prime Minister Pham Minh Chinh, signifying the continued support of the Vietnamese government for the well-established VSIP projects as a driver of industrial development in the country.

The project’s groundbreaking follows the recent presentation of the investment licence to Sembcorp during the Vietnamese President’s state visit to Singapore in February 2022.

Sembcorp Development is a co-master developer of the VSIP projects, leading the Singapore consortium’s partnership with Vietnam’s Becamex IDC Corporation in a 51:49 joint venture respectively.

The 1,000-hectare VSIP Binh Duong III marks a new design concept that aligns with Sembcorp’s focus on growing its portfolio of sustainable urban developments.

Meanwhile, within the next 2 years, Becamex IDC and Warburg Pincus plan to put shares of BW Industrial Development JSC on the stock exchange.

BW is Becamex’s second largest joint venture company. The Vietnamese real estate developer has invested VND3,448 billion in the joint venture, holding 30% of charter capital, the value of the investment recorded in the first quarter financial statements is VND3,304 billion.

The total assets of Becamex at the end of the first quarter reached VND49,504 billion, an increase of more than VND550 billion compared to the beginning of the year. Inventories accounted for the largest proportion of 43.4 percent with VND21,538 billion, up VND607 billion.

In the first quarter of 2022, the corporation recorded a revenue equivalent to the same period last year, reaching VND1,433 billion. G ross profit increased by 41.5 percent to VND821 billion.

Profit after tax reached VND391 billion, down 16.4 percent and fulfilling 13.8 percent of the whole-year plan.