FPT Retail listed at towering reference price

FPT Retail lists shares on stock exchange with the reference price of heaven?

FPT Retail’s reference price is considered heavenly because it will make its capitalisation soar far above its charter capital. At present, the firm has a charter capital of VND400 billion ($17.56 million). With the listing at the reference price of VND125,000 ($5.49), the firm’s capitalisation will reach VND5 trillion ($219.58 million).

In August 2017, FPT sold 30 per cent of FPT Retail, equalling six million shares, to funds managed by or associated with Dragon Capital and VinaCapital. After the deal, FPT holds 47 per cent in FPT Retail, Dragon Capital 20.4, VinaCapital 13.7 per cent, while the rest of the shares are held by various shareholders.

FPT Retail is the second largest digital retailer in Vietnam with approximately 460 stores across the country. It currently manages the FPT Shop and the F.Studio by FPT store chain.

In 2017, FPT Shop was recognised as the firm having the highest profit margin. Notably, according to statistics published by Euromonitor and Retail Asia Publishing, the firm ran circles around Vietnam’s ten largest retailers in terms of sales per square metre with $15,717 per sq.m.

In 2017, FPT Retail reached nearly VND13.2 trillion ($579.7 million) in revenue and VND290 billion ($12.7 million) in after-tax profit, signifying increases of 21 and 40 per cent, respectively.

Along with the digital trading sector, FPT Retail has expanded its business, targeting pharmaceuticals with a market size of approximately $5 billion.

Notably, FPT Retail completed the purchase of the Long Chau drug store chain in 2017 and has developed its own management system for the store system and increased the number of outlets to 10 in Ho Chi Minh City.

The number of Long Chau drug stores is expected to increase by 20 in 2018 in Ho Chi Minh City and it could reach 400 stores over the next four years.

FPT expressed hope that its pharmaceutical unit will contribute 30-40 per cent of the company’s total revenue in the next three to four years.

FPT Retail was established in March 2012 as a member of FPT Corporation. After the divestment in December 2017, FPT Retail became an affiliated company of FPT Corporation.