Vincom starts taking order for US$680mil IPO

HONG KONG: Vincom Retail JSC, the Vietnamese mall operator backed by Warburg Pincus, has started taking investor orders for a domestic initial public offering (IPO) that could raise as much as US$680mil.

Existing shareholders including Warburg Pincus and Credit Suisse Group AG are offering a combined 380.2 million shares at 37,000 dong to 40,600 dong apiece, according to terms for the deal obtained by Bloomberg.

Singapore sovereign fund GIC Pte Ltd and Franklin Templeton Investments are among cornerstone buyers that have agreed to pur- chase about US$382mil of stock, or 59% of the base offering, assuming the deal prices at the midpoint.

The company, an arm of Vietnam’s largest developer Vingroup JSC, is raising funds as economic growth in the country lifts living standards and increases shoppers’ disposable incomes.

The benchmark Ho Chi Minh Stock Index this month hit its highest level since 2008, while the Asian Development Bank forecasts the nation’s economy will expand 6.3% this year.

Vincom Retail’s deal would be the larg- est-ever share sale from the Vietnamese private sector, according to data compiled by Bloomberg. Even at the low end of the price range, the offering would push the country’s IPO market to its highest volume in a decade, the data show.

Vietnam has hosted US$422mil of first-time share sales so far this year, according to the data.

The company aims to take orders through Oct 24 and price the deal Oct 26, before it starts trading Nov 6, the terms show. Citigroup Inc, Credit Suisse and Deutsche Bank AG are among banks arranging the sale.