GIC-backed Vinhomes said to target raising $2b via share sale

Vinhomes Times City residential buildings, developed by Vingroup JSC, stand near the entrance to Vincom Mega Mall Times City in Hanoi, Vietnam. Photographer: Brent Lewin/Bloomberg

Vingroup JSC, Vietnam’s biggest developer, is targeting an initial equity offering of as much as $2 billion for its luxury residential arm, people with knowledge of the matter said.

The Hanoi-based group’s Vinhomes JSC unit is considering seeking a valuation of $13 billion to $16 billion in the share sale, according to one of the people, who asked not to be identified because the information is private. Vinhomes, which began gauging demand for the offering on Tuesday, aims to finalize a list of cornerstone investors by the end of this week, the person said.

A $2 billion deal would be by far the biggest first-time share sale ever in Vietnam, data compiled by Bloomberg show. It would surpass a planned $922 million offering from Techcombank, which started taking orders last week. A deal last year from Vingroup’s mall unit Vincom Retail JSC that raised about $708 million is currently the biggest completed first-time share sale, the data show.

Vinhomes develops serviced apartments and villas in the country’s biggest cities. It may start marketing the share sale around April 27, the person said. The offering will be entirely composed of stock being sold by existing investors, according to terms for the deal obtained by Bloomberg on Tuesday. Vinhomes expects to price the offering early next month and start trading in mid-May, the terms show.

Singapore sovereign wealth fund GIC Pte agreed this month to buy Vinhomes shares and extend the company a debt-like instrument in a $1.3 billion deal, according to a statement posted on Vingroup’s website Monday. GIC also participated in last year’s offering from Vincom Retail and has agreed to buy stock as a cornerstone investor in Vietnamese lender Techcombank’s IPO.

The Vingroup unit hasn’t set final terms for the deal, and details could change depending on investor feedback, the people said. Vingroup Vice Chairwoman Le Thi Thu Thuy didn’t respond to phone calls and a mobile-phone text message seeking comment, while a representative for Vingroup said she couldn’t comment.

Credit Suisse Group AG is among banks arranging the share sale.

Vinhomes operates 10 projects comprising nearly 18,000 apartments, villas and shophouses, according to Vingroup’s annual report. The properties include Vinhomes Royal City in Hanoi and Vinhomes Dong Khoi in Ho Chi Minh City.

Also Read:

Vietnam’s Vingroup raises $1.3b from GIC via stake sale in units, loan

Vingroup picks banks for property unit IPO that could raise $1b

Bloomberg

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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.