VN IPO dealbook: PPI issues more shares, Thuong Dinh has successful IPO

Visual from Pacific Infrastructure Project Development & Investment Corporation website

After a series of unsuccessful IPO’s, Vietnam’s footwear firm Thuong Dinh not only sold out its shares, it was oversubscribed 12 times. Such successful IPOs are said to stem from the valuable tangible assets of the firms. Meanwhile, an affiliate of Civil Engineering Construction Corporation No 1, which was privatised last year, will issue a large tranche of over 25 million shares.

PPI to issue $11.6 million new shares

Pacific Infrastructure Project Development & Investment Corporation (PPI), an affiliate of the state-owned Civil Engineering Construction Corporation No 1 (Cienco 1), will offer an addition of 25 million shares, at nearly VND250.5 billion ($11.59 million), to the public within the next three months.

More than 20 million shares will be issued to existing shareholders, while the remaining units are scheduled to pay dividends and increase the company’s capital.

The VND260 billion company in charter capital is active in the Vietnam construction and real estate market, with a spate of major national route projects, highways, railways and some local roads in the south of Vietnam. Real estate sales accounted for a large part of the firm’s revenue stream last year, surging 442.6 per cent over 2013. Meanwhile, the overall revenue jumped more than 300 per cent to VND352.7 billion, leaving a profit of VND22.9 billion, which skyrocketed by over 200 times compared to the 2013 fiscal.

The extraordinary performance was brought about by its exits from a number of real estate projects. The company said it wants to focus on the main business of construction.

Meanwhile, Cienco 1 was one of the first state firms operating in the construction sector to be equitised. The Ministry of Construction, representing the state capital, is holding 35 per cent. Yen Khanh Production and Trade Services Co Ltd, Fecon Foundation Engineering and Underground Construction and Hassyu Japan, as strategic investors, collectively own 31 per cent.

Thuong Dinh collects $4.2 million from IPO

Shoemaker Thuong Dinh has successfully sold more than 1.9 million of its shares during its IPO in Hanoi, earning a proceed of VND91.7 billion ($4.2 million).

Notably, investors registered to buy a total of 22.1 million shares. This translates into a demand of nearly 12 times higher than the offer. Although the starting price of the auction was just VND10,000, the average price reached VND48,177 per share.

Post the IPO, the Vietnamese state is holding 36 per cent, while a 20 per cent strategic stake has been sold to garment and footwear firm Thai Binh Trade and Investment JSC.

While many state-run business IPOs have failed to attract investors and a good others are predicted to be unappealing, Thuong Dinh’s IPO success is explained by its real estate properties. The company has the land use rights for three locations, which are really convenient for transportation, in the capital city of Hanoi. One of them, the 36,000 square metre plant in Thanh Xuan District, will be cleared to build a new real estate project.

A contract was signed with four contractor partners, but a new legal entity has not been formed to implement the project.

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.

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.