Vincom Retail hit historic transaction as foreign investors owned up to 396.6 million shares

By Minh An - Nov 08, 2017 | 01:50 PM GMT+7

TheLEADEROn the second day (Nov 07) being traded on the Hochiminh Stock Exchange (HOSE), Vincom Retail’s shares (VRE) hit the record of the stock market with 415 million shares worth nearly VND17 trillion (roughly US$740 million) being purchased.

Vincom Retail hit historic transaction as foreign investors owned up to 396.6 million shares
Vincom Center Pham Ngoc Thach, Hanoi

Nearly 415 million shares of Vincom Retail were traded at the price of VND40,600 (roughly US$1.79), with foreign investors owning up to 396.6 million shares.

Warburg Pincus and Credit Suisse, Vincom Retail’s two shareholders, sold a total of 260 million shares worth US$463 million. In 2013 and 2015, these two shareholders invested a total of US$300 million in Vincom Retail. 

After this transaction, Warburg Pincus still holds five per cent stake in Vincom Retail with 93 million shares while Credit Suisse still owns 1.6 per cent stake with 31 million shares.

According to Vincom Retail’s report, foreign organizations buying VRE shares on November 11 include Avanda Investment Management Pte, Dragon Capital, Genesis Investment Management LLP, GIC Pte, HSBC Asset Management (UK), Karst Peak, RWC Asset Advisors (US), Templeton Investments and TT International. These are some of the investors who have worked with Vincom Retail since October 15, 2017.

With the trading price of US$1.79 per share, Vincom Retail has become one of the top 10 listed companies on the stock market with the total assets of VND77 trillion (roughly US$ 3.4 billion).

According to Forbes, this valuation helps to raise the total assets of Pham Nhat Vuong, chairman of Vingroup, to US$3.4 billion, a US$1 billion increase from early 2017. Currently, Vuong is ranked the 663rd richest billionaire in the world.

Vingroup directly holds 18.3 per cent of Vincom Retail. Sai Dong and South Hanoi, Vingroup’s two wholly-owned subsidiaries own 40.5 per cent stake.

Vincom Retail has the charter capital of more than VND19 trillion (roughly US$837.7 million). This company manages, operates and leases 41 commercial centers in 22 provinces and cities across the country with a total retail area of over 1.1 million square meters. It also plans to open other 30 centers in 2018 and attain 200 centers by 2021.

Vincom Retail’s commercial centers had the occupancy rate of 82 per cent in the past three years; the figure for the first half of this year was 89 per cent.

The continuous launching of new commercial centers has helped the company's revenue increase rapidly. In the first half of this year, Vincom Retail’s revenue from leasing space reached VND2,123 billion (roughly US$93.6 million) compared to the total of VND3,805 billion (roughly US$167.8 million) last year.

Vincom Retail also develops shophouses, office tower, and apartments around some of its commercial centers.