Vincom Retail plans US$600 million IPO to provoke market

By Quang Chung - Aug 05, 2017 | 07:51 AM GMT+7

TheLEADERVincom Retail, the largest shopping mall operator in Vietnam, is planning an initial public offering (IPO) worth about US$600 million, a move considered as a retail market provocation and the second largest share sale since 2007 in Vietnam.

Vincom Retail plans US$600 million IPO to provoke market
Photo: Internet

However, the exact size of the offering and the timetable for the listing has not been confirmed yet. The representatives of Vingroup and Warburg Pincus Consortium declined to comment.

Warburg Pincus Consortium is the largest initial investor of Vincom Retail. In 2013, this private equity company bought a 20% stake of Vincom Retail, which was also its first deal in Vietnam. Two years later, it bought another 10%, increasing its total investment in Vincom Retail to $300 million.

Vincom plays a leading role in the retail sector of Vietnam by developing and managing the largest premium shopping malls with two major brands – Vincom Center and Vincom Mega Mall. Vincom Center features international-standard shopping malls of below 100,000 square metres, while Vincom Mega Malls are “all-in-one” commercial centres of over 100,000 square metres with built-in shopping, entertainment and other services.

In this IPO, Vincom Retail is eyeing an opportunity to expand its scale. As a result of positive economic growth, the living standards of the Vietnamese are improving, which provokes the retail market.

According to a report on modern consumerism in ASEAN issued by Hong Kong Trade Development Council, Vietnam and the Philippines are two fastest-growing economies in five largest growth ASEAN markets. Vietnam is likely to have the highest retail growth rates, but modern retail in Vietnam is still at its initial development stage. Therefore, there can be plenty of room for further growth.