<article><a class="tinymce-colortext" style="color: #000080" href="https://www.dealstreetasia.com/tag/vincom-retail/">Vincom Retail</a>, the shopping mall operator under Vietnam’s leading property developer <a class="tinymce-colortext" style="color: #000080" href="https://www.dealstreetasia.com/tag/vingroup/">Vingroup</a>, has completed its $740 million initial equity offering and made its debut on the Ho Chi Minh City Stock Exchange (HOSE).</article>

<a class="tinymce-colortext" style="color: #000080" href="https://www.dealstreetasia.com/tag/vincom-retail/">Vincom Retail</a>, the shopping mall operator under Vietnam’s leading property developer <a class="tinymce-colortext" style="color: #000080" href="https://www.dealstreetasia.com/tag/vingroup/">Vingroup</a>, has completed its $740 million initial equity offering and made its debut on the Ho Chi Minh City Stock Exchange (HOSE).
The company said on Tuesday that it had sold approximately 415 million shares, or 21.8 per cent of the total issued shares, raising $740 million in Vietnam’s largest ever equity deal.
The offering was over-subscribed by more than five times for the non-cornerstone allotment. New investors include Avanda Investment Management Pte, <a class="tinymce-colortext" style="color: #000080" href="https://www.dealstreetasia.com/tag/dragon-capital/">Dragon Capital</a>, Genesis Investment Management LLP, GIC, <a class="tinymce-colortext" style="color: #000080" href="https://www.dealstreetasia.com/tag/hsbc-global-asset-management/">HSBC Global Asset Management</a> (UK), Karst Peak, RWC Asset Advisors (US), <a class="tinymce-colortext" style="color: #000080" href="https://www.dealstreetasia.com/tag/templeton/">Templeton Investments</a> and TT International.
On a combined basis, the subscription to Vincom Retail’s initial offering amounted to over $2 billion, the firm revealed on Tuesday.
This announcement came a day after the Vingroup retail arm listed its 1.9 billion shares on HOSE under the ticker VRE. With a valuation of more than VND77 trillion ($3.4 billion), Vincom Retail has become the country&#8217;s eighth largest listed company. Its parent firm, Vingroup, is currently the third largest with a VND163.5 trillion ($7.2 billion) market value.
“The offering has widened Vincom Retail’s world-class investor base and the listing also gives public investors access to Vietnam’s fastest-growing retail operator,” it said in a statement.
Shares are expected to be delivered to investors’ accounts at the close of business on November 9, 2017 and investors will be free to trade those shares from November 10, 2017.
“This is truly a landmark transaction for Vietnam. Over four years ago, we had a vision to work with Vingroup to create a best-in-class fully integrated modern retail platform with a dominant presence across Vietnam.  Today, the company’s unrivaled scale and nationwide reach make it the partner of choice for retailers and brands looking to tap into Vietnam’s rapidly expanding middle class and emerging consumption,” commented Jeffrey Perlman, managing director and head of Southeast Asia at Warburg Pincus.
The US-based global private equity investor led a $200-million funding round in Vincom Retail in 2013 as its first investment in a Vietnam firm. A follow-on funding worth $100 million was carried on two years later.
Last month, Vincom Retail announced that Warburg Pincus and its co-investor <a class="tinymce-colortext" style="color: #000080" href="https://www.dealstreetasia.com/tag/credit-suisse/">Credit Suisse</a> had converted their preferred stocks into a 20.22 equity per cent stake in the firm.
Vincom leads Vietnam’s retail market with 41 shopping malls in 22 provinces and cities across the country. It has obtained a market share of 60 per cent in the key cities of Hanoi and Ho Chi Minh City combined.
The consumer sector in Vietnam boasts a lot of potential as the country’s middle and affluent class is projected to double from 12 million people in 2012 to 33 million by 2020, growing faster than any other nation in the region, according to the Boston Consulting Group.
Vietnam’s retail sales in the first eight months of 2017 hit $114.7 billion, a 10.3 per cent year-on-year increase, and is expected to reach $179 billion by 2020, according to government data. The country ranked sixth among the world’s fastest-growing emerging retail markets, as per the Global Retail Development Index.
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<a class="tinymce-colortext" style="color: #ff0000" href="https://www.dealstreetasia.com/stories/warburg-pincus-credit-suisse-hold-20-stake-vincom-retail-83285/">Warburg Pincus, Credit Suisse together hold more than 20% of Vincom Retail</a>

With a valuation of more than VND77 trillion ($3.4 billion), Vincom Retail has become the country's eighth largest listed company.

Vietnam: Vincom Retail raises $740m from GIC, Templeton, HSBC, others in IPO

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Vietnam: Vincom Retail raises $740m from GIC, Templeton, HSBC, others in IPO

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