Vinhomes seeks up to $1.4b in Vietnam’s biggest equity issue

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

Vinhomes JSC, the residential property developer of conglomerate Vingroup JSC, launched an equity issue of up to $1.4 billion on Monday, making it the country’s biggest-ever IPO in a market, drawing strong interest from global and local funds.

The issue eclipsed an equity offering from Vietnam Technological and Commercial Joint Stock Bank, which was priced at the top-end of an indicative range and raised roughly $922 million last week.

Shares of Vinhomes are being marketed in a range of 110,500 Vietnamese dong to 114,700 Vietnamese dong per share ($4.85-$5), implying a market value of $13 billion to $13.5 billion for the company, which is betting on an increase in home sales in one of Southeast Asia’s fastest growing economies, the term sheet showed.

There was no response from Vinhomes to a Reuters query sent on a market holiday. 

The IPO comes at a time when Vietnam’s markets have dropped as much as 15 percent from record highs hit earlier this month, but analysts view the correction to be short-lived.

Vinhomes says it is the dominant player in the high-end property segment in Hanoi and Ho Chi Minh City, with a 48 percent market share and an overall market share of 15 percent across all residential segments. 

Local and global investors have agreed to take in about three-quarters of the initial equity offering, underscoring huge support for the issue, the term sheet showed.

Earlier this month, Singapore wealth fund GIC came in as a pre-IPO investor and took a roughly 7 percent stake for about $853 million by buying shares from Vingroup and other shareholders.

Vinhomes’ IPO, which will be listed on the Ho Chi Minh Stock Exchange, will rank the company among the biggest listed local firms. The issue consists of secondary shares.

Vinhomes is majority-owned by Vingroup, the country’s biggest conglomerate, which operates in real estate, education, healthcare, entertainment, retailing and automobile manufacturing sectors.

Roadshows for the issue kicked off in Hong Kong on Monday, followed by London, New York, Singapore and Boston, the term sheet showed. The shares are set to be priced on May 7 and expected to be listed on May 17.

Reuters

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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.