Mall operator Vincom Retail raises US$709 million in Vietnam’s largest IPO ever

Fri Oct 27, 2017 - 5:12am UTC
Vincom Mega Msll
Mall operator Vincom Retail raises US$709 million in Vietnam’s largest IPO ever

Vincom Retail

Vietnam’s mall operator Vincom has recently secured US$709 million in its initial public offering on the Ho Chi Minh stock exchange (HOSE), marking the biggest ever domestic flotation in Vietnam and Southeast Asia.

The company sold 397 million shares priced at 40,600 dong (US$1.79) apiece which was the top-end of the price range projected by the underwriters. The amount raised is more than double of any previous IPO on the HOSE exchange board.

The biggest winners are the shareholders in Vincom – private equity firm Warburg Pincus and investment bank Credit Suisse. For selling part of its stake, Warburg Pincus received 4.8 trillion dong (about US$211 million) that is more than twice the value of its initial investment.

Other cornerstone investors in the offering also include Genesis Investment Management, HSBC Global Asset Management, and London-based fund manager TT International. Citi was one of the joint global coordinators of the deal, with Credit Suisse and Deutsche Bank, Saigon Securities acting as the joint manager.

Vincom Retail owns shopping centers including Vincom Mega Mall Royal City and Vincom Mega Mall Times City which offer customers the opportunity to buy from popular foreign brand including Zara and H&M.

The capital from this IPO will be used to fund an expansion project the group has plotted to operate 200 malls by 2021 as subjected to market demand and the availability of suitable sites.

This is almost five times of its existing 41 sites, and is aimed at targeting the younger population and their boosted demand for foreign brands.

Vincom is looking to list its shares on November 6.

This news is published on Reuters.

Vivian Foo is a reporter who writes about Southeast Asia’s technology and startup space. The entry point which led her to write about the startup ecosystem was her fascination of the dot-com boom. She is taking a deep dive into how the entrepreneurial mindset works and hopes to share the insights, innovation, and stories of the startups with her readers.