Vietnam’s Vingroup plans to raise $880m through preference issue

Vingroup's Vincom Retail. Photo: REUTERS

Vietnam’s biggest property developer Vingroup plans to raise VND20 trillion ($880 million) through an issue preference shares to investors this year, according to a submission of its board of directors at the annual shareholder meeting on May 31.

The funds will be used to supplement the investment capital of the group’s ongoing projects. The volume of issued shares, however, has not been announced.

Vingroup expects to pay dividends at the rate of 1,000: 210 (each shareholder owning 1,000 shares will receive dividends by 210 shares). After the dividend payout which is scheduled in this second quarter, the group’s charter capital is expected to increase to VND31.9 trillion ($1.4 billion).

The real estate giant targets its 2018 revenue to touch VND120 trillion ($5.28 billion), after-tax profit at VND8.5 trillion ($374 million), up 34 per cent and 50 per cent year-on-year respectively.

At the meeting, Vingroup’s Chairman Pham Nhat Vuong also said that automobile production will be one of the main business pillars of the group besides real estate, entertainment and retail. With VinFast, Vingroup said it hopes to become a top car manufacturer in the Southeast Asian region, making 500,000 cars per year by 2025.

Vingroup raised $1.3 billion from Singapore’s wealth fund GIC by selling a stake in two units and through a loan in April. One of the units involved is IPO-bound Vinhomes, the luxury villa and serviced apartment development arm of Vingroup. The capital raised will be used to fund the units’ projects, the Vietnamese realty giant said in a statement.

Recently, Vinhomes became the second most valuable listed firm in the Southeast Asian country as the property player made its stock market debut at a premium.

Also Read:

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

Vietnam’s realty major Vingroup forays into pharma sector

Vietnamese realty major Vingroup forays into higher education space 

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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.