Vietnam Rubber Group IPO raises $57.7m, far lower than govt target

Vietnam has raised VND1.31 trillion ($57.7 million) from the initial public offering (IPO) of Vietnam Rubber Group (VRG) on Ho Chi Minh City Stock Exchange on February 2.

The proceeds were far lower than the state’s expectation of raising at least VND6.2 trillion ($273.1 million) from the IPO. Only 110.7 million shares were sold of the 475.1 million shares on offer in the auction.

The government had put up an 11.8 per cent stake on sale through the auction. It will sell an additional 11.8 per cent of VRG to domestic strategic partners. Some 1.22 per cent, or nearly 49 million shares, will be sold to current employees and 0.02 per cent to members of VRG’s trade union.

VRG’s IPO was similar in size to that of PetroVietnam Power Corporation (PV Power) conducted in January but the final result was glaringly different. On Wednesday, Vietnam raised $308 million (VND6.996 trillion) by selling 20 per cent of PV Power in an IPO.

Restricting foreign strategic investors, according to experts, is the main reason that made VRG’s IPO less attractive compared to Binh Son Refining and Petrochemical and PVOIL IPOs that raised $245 million and $184 million respectively for the Vietnamese government last week. All these IPOs had exceeded government expectations in terms of proceeds, reflecting strong investor interest.

Also Read:

Vietnam Dealbook: VRG to miss IPO target; Japan’s Mikazuki to invest $10

Vietnam Rubber Group targets raising $273m in Feb IPO

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.