Memories Group debut on Singapore Exchange as Myanmar’s first Tourism Stock

Memories Group, Balloon over Bagan
Memories Group debut on Singapore Exchange as Myanmar’s first Tourism Stock

5/1/2018 – An operator of a series of tourism-related businesses, Memories Group has begin trading on the Singapore Exchange board today.

With this listing, the company which is the largest operator of hot air balloons in Myanmar will become the first Burmese tourism-focused company to list on an exchange board.

Memories Group is also the spin-off of tourism assets at Yoma Strategic Holdings Ltd and two other companies, which has undertaken a reverse takeover (RTO) of SHC Capital Asia.

It will not hold a public offering as the company has previously raised S$10.7 million (about US$8.07 million) by placing 42.6 million new shares and 7.4 million vendor shares at S$0.25 per piece, in a placement that ended on January 3.

Following the placement, Yoma now controls a 47.6 percent stake in Memories Group.

“While it is in our strategy to develop new tourist destinations in Myanmar, we intend to embark on the expansion route through a series of tourism-related business acquisitions post-RTO,” said the executive chairman of Memories Group, Serge Pun.

“Through this acquisitions,” he explained. “We hope to enhance our footprint in the industry, and also raise our status as a premier tourism-related company.”

Since the company Reverse Take Over (RTO) and its placement of new shares, Memories Group’s valuation has increased to a little over US$100 million, a value that equates to a price-to-book value of about 2.3 times.

A leading tourism company in Myanmar, Memories Group is primarily known for its hot air balloons flight in Bagan and Inle Lake regions, which is among Myanmar’s most iconic tourist attractions.

Besides Balloons over Bagan, the company also has hostel businesses including the Hpa-an Lodge and Pun Hlaing Lodge businesses, as well as the Bagan Land which is a 4.3-acre land that is slated to develop into a commercial and hospitality development.

The company also has an arm that specializes in designing and implementing customized tours, excursions, activities, and cultural experiences, managing of travel logistics and organizing events.

Chief executive officer of Memories Group, Michel Novatin said, “We are delighted to be listed on the SGX-ST which will allow us to attract good and reputable partners and investors.”

“We can start to execute our business strategy in acquiring assets that fit in and complement the Memories brand. Unifying our assets under a single cohesive brand and together with the Integrated Tourism Platform, allows us to seamlessly manage our clients across businesses.”

The company is looking to position itself as a leading tourism company, capitalizing on their extensive local network and the first mover advantage.

Vietnam Rubber Group to raise US$273 million in February IPO

Vietnam Rubber Group, VRG
Vietnam Rubber Group to raise US$273 million in February IPO

Vietnam Rubber Group, VRG

4/1/2018 – State-owned Vietnam Rubber Group (VRG) has announced that it is going for an initial public offering that will be scheduled on the 2nd of February.

Under the deal, VRG will be offering 475.1 million shares, which represents about 11 percent of its charter capital. The shares will be sold at an initial starting price of US$0.59 apiece to raise VND6.2 trillion (about US$273.1 million).

This decision came from its parent company Vietnam Rubber Industry Group (Vinaruco-VRGX) and has gained the approval of Deputy Prime Minister Vuong Dinh Hue.

VRG currently has a charter capital of VND40 trillion (about US$1.76 billion), represented by 4 billion shares. Of this, the government will retain a 75 percent stake.

From the remaining shares, 475 million shares are for public auction, while another 475 million shares will be sold exclusively to domestic strategic partners. Nearly 49 million shares will be sold to current employees and 0.02 percent to members of VRG’s trade union.

In fact, VRG’s IPO will be similar in size to that of PetroVietnam Power Corporation (PV Power) which will be conducted later this month.

The Ministry of Agriculture and Rural Development (MARD) will act as the state’s representative in the sale. For this IPO, the company will only be selling their shares to domestic investors and not foreign investors.

“There are a few reasons not to sell VRG’s shares to foreign investors, but the main reason is because of important position of land that this group holds,” Deputy Minister of Vietnam’s Agriculture and Rural Development Ha Cong Tuan said.

To ensure that investors will commit to attaching long-term interests to the company even after equitization, the deal also includes a condition of not transferring shares for 5 years.

Earlier in November 2017, Vietnam’s government approved VRG’s five-year production and business plan for 2016-2020. The company targets achieving an average annual growth of 18 percent during the period. With total revenue surpassing VND40 trillion (US$1.76 billion) and profit of around VND 9 trillion (about US$409 million) by 2020.

The Vietnam Rubber Group was initially established in an effort to restructure the Vietnam General Rubber Corporation. The company takes a multi-sector investment strategy, focusing on hydropower, cement, construction, as well as the banking sectors.

[News from VCNN]