Vietnam’s Vingroup buys 80% stake in VEFAC via IPO

Tran Van Tan, VEFAC chief executive, is third from the right

The Vietnam Exhibition and Fair Centre Co Ltd (VEFAC) or the Giang Vo Exhibition Centre, has sold 80 per cent of it’s stake to Vingroup,

The company also saw another batch of 620,500 shares auctioned today at its initial public offer (IPO) on the Hanoi Stock Exchange. This represents 4 per cent of the company’s offer.

The average price was VND10,058 ($0.47) per share. Thus, the company collected VND6.24 billion ($290,200). The highest bidding price was VND15,000.

While the company offers some 16.3 million shares, 29 investors has earlier registered to buy only 620,500 shares, including one organisation, which bought 100,000 units.

Also read: VN’s Giang Vo Exhibition plans IPO, to invest in realty projects

VEFAC’s IPO failed to attract retail buyers but was able to raise money by selling a majority stake to Vingroup. The centre is a lucrative business for  the realty major because of a line up of realty projects that the Vietnamese state has assigned to VEFAC.

The 16.3 million shares mentioned above account for only 9.76 per cent of the company. Vingroup has committed to repurchase the remaining shares if they fail to get buyers, at the starting price of VND10,050 of the IPO, said VEFAC chairman and CEO Tran Van Tan.

The newly equitised company’s revenue and profit last year reached VND69.7 billion ($3.2 million) and VND6.1 billion ($283,700). It expected profit for 2015-17 period will be around VND6 billion.

As scheduled, VEFAC’s charter capital will be VND1.67 trillion ($77.67 million), in which the Vietnamese government holds 10 per cent, public auction accounts for 9.76 per cent and issuance to its employees is 0.24 per cent. Its registered capital prior to the IPO is VND97.6 billion ($4.5 million).

Related stories:

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Licogi IPO plan approved, realty assets attract investors

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

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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.