Vincom Retail, the shopping mall subsidiary of Vingroup, launched Vietnam’s largest-ever initial public offering (IPO) in a deal worth up to US$713 million.
The IPO consists of 380.22 million shares in the institutional tranche and another 19 million for the retail tranche offered in an indicative range of VND37,000 to VND40,600 (from US$1.63 to US$1.79) each.
Singapore sovereign fund GIC Pte and Franklin Templeton Investments are among cornerstone buyers that have agreed to purchase about US$382 million of stock that is equivalent to 59% of the base offering.
Other cornerstone investors in the offering include Genesis Investment Management LLP, HSBC Global Asset Management and London-based fund manager TT International.
Avanda Investment Management Pte of Singapore and Vietnamese investment firm Dragon Capital have also committed to invest in the IPO.
Vincom Retail is raising funds as economic growth in the country lifts living standards and increases shoppers’ disposable incomes. The benchmark Ho Chi Minh Stock Index this month hit its highest level since 2008 while the Asian Development Bank forecasts the nation’s economy will expand 6.3 percent this year.
Vincom Retail’s deal would be the largest-ever share sale from the Vietnamese private sector. Even at the low end of the price range, the offering would push the country’s IPO market to its highest volume in a decade.
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The United Capital Management Joint Stock Company (Unicap) which manages investment funds will provide financial services to FLC and Faros in the near future.
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