Becamex (BCM) Proposes State Ownership Cut to 65% via Public Offering

Overview

Becamex (BCM), a leading industrial and residential real estate developer in southern Vietnam, has proposed reducing state ownership from 95.44% to over 65% during 2026-2030 via a public share issuance. The proposal, submitted to HCMC authorities on June 2, aims to meet public company shareholder structure requirements under the Securities Law. BCM currently has 9,221 shareholders, with the HCMC People’s Committee as the sole major shareholder.

Key Facts

• State ownership in Becamex stands at 95.44%, held by the HCMC People’s Committee.
• The company has 9,221 shareholders as of end-May.
• Becamex proposes reducing state ownership to above 65% during 2026-2030.
• The reduction will be executed via a public share issuance.
• BCM currently does not meet the public company requirement of at least 10% held by at least 100 minority investors.
• In 2023, Becamex reported revenue of VND 9,819 billion and net profit of VND 3,525 billion.
• The company targets 2024 revenue of VND 10,230 billion (+4%) and net profit of VND 3,883 billion (+10%).
• BCM has over 1 billion shares listed on HOSE, with a market capitalization exceeding VND 55,500 billion.

What Happened

In a document sent to the HCMC Stock Exchange on June 2, Becamex stated that as of end-May, it had 9,221 shareholders, with the HCMC People’s Committee as the sole major shareholder representing the state with 95.44% ownership. The company currently does not meet the public company condition under the Securities Law, which requires at least 10% of shares to be held by at least 100 minority investors. However, it maintains public company status under transitional provisions of the State Capital Management and Investment Law.

Becamex has proactively developed a plan and proposed to the HCMC People’s Committee to approve a reduction of state ownership from 95.44% to above 65% during 2026-2030, through a public share issuance, to meet the shareholder structure requirements for a public company. This follows a previous attempt in early 2023 to auction 300 million shares at a starting price of VND 69,600 per share, which was postponed due to unfavorable market conditions.

Market Context

BCM shares closed at VND 53,700 on June 3, up 0.75% with volume of 289,900 shares. The stock has a market capitalization of over VND 55,500 billion. Becamex is a major industrial and residential real estate developer in southern Vietnam, with its largest projects in Binh Duong province. The proposed state divestment is part of a broader trend of state-owned enterprises reducing government stakes to improve corporate governance and meet listing requirements.

Strategic Significance

The proposed reduction in state ownership from 95.44% to above 65% would significantly increase the free float and potentially improve liquidity and corporate governance. A successful public offering could attract both domestic and foreign institutional investors, aligning BCM with international standards. The move also addresses regulatory compliance, as the company currently relies on transitional provisions to maintain public company status. The long-term plan (2026-2030) suggests a gradual approach, likely to minimize market disruption and optimize pricing.

What to Watch

• Approval from the HCMC People’s Committee for the proposed state ownership reduction plan.
• Details of the public share issuance, including size, pricing, and timeline.
• Market conditions and investor appetite for BCM shares, especially given the previous failed auction.
• Q2 2024 earnings report to assess financial performance and progress toward full-year targets.
• Any changes in the Securities Law or state capital management regulations affecting the divestment process.