Vietnam’s biggest-ever IPO rocks stock market

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The Communist nation of Vietnam saw its biggest-ever initial public offering at the stock market on October 26, with the retail unit of the country’s largest conglomerate Vincom raising 16.1 trillion dong, or $709 million, in a pre-listing share sale to institutional investors, more than the $600 million initially expected.

Vincom Retail JSC’s existing investors raised the amount after pricing an initial public offering of the Vietnamese mall operator at the top end of a marketed range. Existing shareholders including Warburg Pincus and Credit Suisse Group AG priced 396.5 million shares at 40,600 dong apiece, according to terms for the deal obtained by Bloomberg.

Warburg Pincus, the private equity group, will be one of the big winners in the offering, with its $211-million investment more than doubling in value as it sells off some of its stake in Vietnam’s biggest mall operator. Vincom intends to list its shares on November 6.

Vincom is on an aggressive expansion drive on the hopes that a young population and higher disposable income will boost demand for foreign brands. In its prospectus, the company said that it aimed to operate 200 malls by 2021 “subject to market demand and the availability of suitable sites” — almost five times its existing 41 sites, among which are the flagships Vincom Mega Mall Royal City in Hanoi and the Vincom Center Shopping Mall in Ho Chi Minh City.

The benchmark Ho Chi Minh Stock Index this month hit its highest level since 2008, while the Asian Development Bank forecasts Vietnam’s economy will expand 6.3 per cent this year.

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Reading Time: 1 minute

The Communist nation of Vietnam saw its biggest-ever initial public offering at the stock market on October 26, with the retail unit of the country’s largest conglomerate Vincom raising 16.1 trillion dong, or $709 million, in a pre-listing share sale to institutional investors, more than the $600 million initially expected.

Reading Time: 1 minute

The Communist nation of Vietnam saw its biggest-ever initial public offering at the stock market on October 26, with the retail unit of the country’s largest conglomerate Vincom raising 16.1 trillion dong, or $709 million, in a pre-listing share sale to institutional investors, more than the $600 million initially expected.

Vincom Retail JSC’s existing investors raised the amount after pricing an initial public offering of the Vietnamese mall operator at the top end of a marketed range. Existing shareholders including Warburg Pincus and Credit Suisse Group AG priced 396.5 million shares at 40,600 dong apiece, according to terms for the deal obtained by Bloomberg.

Warburg Pincus, the private equity group, will be one of the big winners in the offering, with its $211-million investment more than doubling in value as it sells off some of its stake in Vietnam’s biggest mall operator. Vincom intends to list its shares on November 6.

Vincom is on an aggressive expansion drive on the hopes that a young population and higher disposable income will boost demand for foreign brands. In its prospectus, the company said that it aimed to operate 200 malls by 2021 “subject to market demand and the availability of suitable sites” — almost five times its existing 41 sites, among which are the flagships Vincom Mega Mall Royal City in Hanoi and the Vincom Center Shopping Mall in Ho Chi Minh City.

The benchmark Ho Chi Minh Stock Index this month hit its highest level since 2008, while the Asian Development Bank forecasts Vietnam’s economy will expand 6.3 per cent this year.

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