Vinhomes, the luxury villa and serviced apartment development arm of Vietnam’s biggest property developer Vingroup (VIC), has registered to list nearly 2.7 billion shares on Ho Chi Minh City Stock Exchange (HoSE).
In a disclosure to HoSE, the realty developer announced it has a charter capital of VND26.79 trillion ($1.17 billion). Hanoi-based Vingroup currently owns 69.67 per cent of Vinhomes’ charter capital.
Founded in 2014, Vinhomes offers serviced apartments and villas to residents in the country’s biggest cities. It now owns many brands Vinhomes Royal City (Hanoi); Vinhomes Times City (Hanoi); Vinhomes Riverside (Hanoi); Vinhomes Dong Khoi (Ho Chi Minh City).
Vingoup in February said that it is planning a spinoff of its luxury residential arm that could raise as much as $1 billion, which will mark a strong run of IPOs in the country.
Vietnam’s biggest property developer recently has picked four foreign banks for the planned initial public offering of Vinhomes including Citigroup, Credit Suisse, Deutsche Bank and Morgan Stanley.
The IPO of Vinhomes would follow last year’s listing of Warburg Pincus-backed Vincom Retail JSC, Vietnam’s biggest shopping mall operator and also a unit of Vingroup, which raised roughly $700 million.
The participation of Singapore sovereign wealth fund GIC and Franklin Templeton in Vincom Retail’s IPO has attracted other global investors to the country, bankers and lawyers said.
The share sales come in the backdrop of Vietnam’s strong economic growth propelled by domestic demand, export earnings and reforms.