Becamex (BCM) Proposes State Ownership Cut to 65% to Meet Listing Rules

Overview

Becamex (BCM), the industrial park and urban developer, has proposed reducing state ownership from 95.44% to over 65% to comply with public company shareholder structure regulations. The proposal, submitted to the Ho Chi Minh City People’s Committee, would be executed via a public share issuance. Separately, BCM reported a 21.1% decline in Q1 2026 net profit to VND 288 billion, citing lower revenue and higher financial costs.

Key Facts

• Becamex proposes cutting state ownership from 95.44% to above 65% over 2026-2030.
• The company currently has 9,221 shareholders, but only 4.56% of voting shares are held by non-major shareholders (9,220 shareholders).
• The proposal aims to meet the requirement that at least 10% of voting shares be held by at least 100 non-major investors by January 1, 2026.
• The reduction will be implemented via a public share issuance, pending approval from the HCMC People’s Committee.
• Q1 2026 net profit fell 21.1% year-on-year to VND 288 billion, while revenue dropped to VND 1,106 billion from VND 1,847 billion.
• Financial costs increased by VND 36 billion, while selling and administrative expenses were cut by about VND 70 billion.
• As of end-March 2026, BCM had equity of VND 10,350 billion and retained earnings of VND 8,698 billion.

What Happened

Becamex (BCM) disclosed in an irregular information announcement that it does not fully meet the public company conditions under current securities law. Although the company has 9,221 shareholders, only 4.56% of voting shares are held by non-major shareholders, falling short of the 10% threshold required for companies listed before January 1, 2021. However, BCM is allowed to maintain its public company status under transitional provisions of the Law on Management and Investment of State Capital in Enterprises.

To address the structural deficiency, BCM has proactively developed a plan and proposed that the HCMC People’s Committee approve a reduction in state ownership from 95.44% to over 65% of charter capital during 2026-2030. The reduction would be carried out through a public share issuance to ensure compliance with shareholder structure requirements. Separately, BCM reported a 21.1% drop in Q1 2026 net profit, attributing the decline to lower gross profit, reduced financial income, and higher financial costs, partially offset by lower selling and administrative expenses.

Market Context

BCM shares closed at VND 53,300 on June 2, 2026, down 2.56% on volume of 591,700 shares. The stock trades on HOSE in the real estate sector, specifically industrial parks. The proposed state divestment could significantly increase free float and liquidity, potentially attracting more institutional and foreign investors. However, the Q1 earnings decline may weigh on near-term sentiment. The broader Vietnamese market has been volatile amid regulatory changes and global economic uncertainty.

Strategic Significance

The proposed reduction in state ownership from 95.44% to above 65% is a critical step for BCM to comply with public company rules and improve corporate governance. A larger free float would enhance stock liquidity and potentially lead to index inclusion or increased foreign ownership. The public issuance could also raise capital for expansion, though dilution risk exists. The Q1 profit decline highlights operational challenges, but the company’s strong equity base (VND 10,350 billion) and retained earnings provide a buffer. The success of the proposal depends on HCMC approval and market conditions.

What to Watch

• Approval decision from the HCMC People’s Committee on the state ownership reduction plan.
• Details of the public share issuance, including size, pricing, and timeline.
• Q2 2026 earnings report to assess whether revenue and profit trends improve.
• Changes in foreign ownership limits and free float after the issuance.
• Any further regulatory updates on public company compliance requirements.