Vincom Retail to score largest sale in IPO history

Vincom Retail puts 380 million shares on sale at its IPO

Currently, two security companies, SSI and VNDIRECT, are in charge of the initial distribution of Vincom Retail’s stocks through the book-building process.

The shopping mall operator of Vincom Retail will likely offer both existing shares and new issuance, according to newswire DealStreetAsia.

According to newswire Bloomberg, the two latest shareholders of Vincom Retail are US-based Warburg Pincus and Zürich-headquartered Credit Suisse Group AG with a total combined 380.2 million shares offered at VND37,000 ($1.63) to VND40,600 ($1.79) apiece.

Likewise, the two foreign investors hold respectively 15.17 and 5.06 per cent of the firm’s capital, according to newswire Reuters.

Earlier, in 2013, the Warburg Pincus consortium held 20 per cent equity interest in Vincom Retail, followed by another $200 million investment in 2015.

In addition, the subsidiary signed a major agreement with GIC Pte. and Franklin Templeton Investment to purchase roughly 59 per cent of the initial offering or $382 million shares.

According to Financial Times, the forecasted market capitalisation for Vincom Retail, once listed on Ho Chi Minh Stock Exchange (HOSE), would mount from $3.1 billion to $3.4 billion.

The upcoming share sale of Vincom Retail is predicted to be the largest transaction in the private sector’s history of IPOs.

According to newswire Global Capital Asia, the latest recorded debut of an enterprise that reached $100 million was the 2016 IPO of the affordable airline Vietjet Aviation.

However, Vincom Retail will possibly beat the IPO record of Commercial Bank for Foreign Trade of Vietnam (Vietcombank), which in 2007 earned a whopping $652 million on the first day of its IPO, as reported by newswire Nikkei Asian Review.

In 2017, the subsidiary held a registered capital of VND19.010 trillion ($836.63 million).

Along with information about its IPO, the schedule to list 1.9 billion shares on the exchange was expected to be announced on November 6, however, to date, no information has been forthcoming.

Vincom Retail is Vietnam’s largest shopping mall operator under the control of the property and retail conglomerate Vingroup.

The subsidiary firm holds numerous prime assets, including Vincom Mega Mall Royal City, Vincom Mega Mall Times City, and Vincom Ba Trieu in the capital city of Hanoi; Vincom Dong Khoi and Vincom Thu Duc in Ho Chi Minh City; Vincom Ha Long and Vincom Ngo Quyen in the central city of Danang.

The firm makes up approximately two thirds of the nation’s modern retail industry.

Warburg Pincus is a US-based global equity firm with over $44 billion in assets under management and a portfolio stretching over 150 companies in over 40 countries in the world.

Credit Suisse Group is a Swiss multinational financial services holding company with an estimated revenue of CHF23.38 billion ($23.721 trillion) in 2015.

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