omniture

Vincom Retail Completes the Largest Initial Equity Offering in Vietnam

Warburg Pincus
2017-11-07 18:16 3433

HO CHI MINH CITY, Vietnam, Nov. 7, 2017 /PRNewswire/ -- Vincom Retail (HOSE: VRE, "the Company"), the largest retail property developer, owner and operator in Vietnam, today announced the completion of trading of approximately 415 million shares, raising an equivalent of over US$740 million for the existing shareholders, and making it the country's largest ever initial equity offering (IEO) on the Ho Chi Minh City Stock Exchange.


The transactions today represented 21.8% of the total number of issued shares of Vincom Retail. At the trading price of VND 40,600 per share, Vincom Retail is valued at more than VND 77,000 trillion, or US$ 3.4 billion. This makes Vincom Retail one of the top 10 listed companies on the stock exchange and is the first Vietnamese shopping mall developer and operator to list its stock. Shares are expected to be delivered to investors' accounts at the close of business on November 9, 2017 and investors will be free to trade those shares from November 10, 2017.

The offering has widened Vincom Retail's world-class investor base and the listing also gives public investors access to Vietnam's fastest-growing retail operator. Vincom continues to have the strategic support of Vingroup, the country's largest private sector company traded on the Ho Chi Minh City Stock Exchange, as well as WP Investments III B.V., an affiliate of the global private equity firm Warburg Pincus. Vingroup and WP Investments III B.V., which first invested in the Company in 2013, will continue to hold shares.

The initial equity offering was over five times over-subscribed for the non-cornerstone allotment.  New cornerstone institutional investors of Vincom Retail include Avanda Investment Management Pte., Dragon Capital, Genesis Investment Management LLP, GIC Pte., HSBC Global Asset Management (UK), Karst Peak, RWC Asset Advisors (US), Templeton Investments and TT International. On a combined basis, the offering received a record amount of over US$ 2 billion in subscription.

By September 30, 2017, Vincom Retail has managed, operated and leased 41 retail malls in 22 provinces and cities in Vietnam, with a total retail gross floor area (GFA) of over 1.1 million square meters and a market share of 60% of the retail sector in the key cities of Hanoi and HCMC combined.  Its mall properties have more than 1,000 unique tenants, including world-class brands such as Zara and H&M.  Vincom also has another 73 projects in pipeline, of which 22 projects are under construction, which span a further 29 provinces in Vietnam.

Vincom Retail is widely recognized for its innovative approach and strong execution capabilities to develop high quality properties that meet the evolving demands of Vietnamese consumers. The Company's track record of industry firsts includes developing the first ever shopping mall in Vietnam in 2004 in Hanoi and the first integrated retail project that combined shopping, entertainment and other lifestyle elements in Ho Chi Minh City in 2010.

Jeffrey Perlman, Managing Director and Head of Southeast Asia of Warburg Pincus, said, "This is truly a landmark transaction for Vietnam.  Over 4 years ago, we had a vision to work with Vingroup to create a best-in-class fully integrated modern retail platform with a dominant presence across Vietnam.  Today, the Company's unrivaled scale and nationwide reach make it the partner of choice for retailers and brands looking to tap into Vietnam's rapidly expanding middle class and emerging consumption.  We look forward to continuing to assist the Vincom Retail management team as the company furthers its expansion and embarks on a new journey as one of the leading listed companies in Vietnam."   

Commenting on the success of the offering, Pham Nguyen Anh Thu, Chief Investment Officer of Vingroup JSC said: "We are excited to welcome our new shareholders, including the distinguished cornerstone investors, as our new partners. We believe the real estate, retail and consumer industries in Vietnam offer tremendous untapped investment potential as Vietnam's middle class has grown faster than that of any other country in Southeast Asia according to BCG, which reported that its "middle and affluent class" is expected to double from 12 million in 2012 to 33 million people, which is about one third of the population, by 2020. We are excited about Vincom Retail's robust expansion plan as a leading national retail mall operator in Vietnam and its commitment to delivering long-term value to all shareholders."

ABOUT VINCOM RETAIL
Vincom Retail JSC is the largest developer, owner and operator of retail malls in Vietnam, offering four mall concepts including Vincom Center, Vincom Mega Mall, Vincom Plaza and Vincom Plus tailored to a wide variety of consumer needs. As of 30 September 2017, Vincom Retail has 41 retail malls under operation in 22 cities and provinces in Vietnam, with a total retail gross floor area (GFA) of over 1.1 million square meters and a market share of 60% of the retail sector in the key cities of Hanoi and HCMC combined. Vincom Retail was listed on November 6, 2017 on Ho Chi Minh Stock Exchange (HOSE). For more information on Vincom Retail, please visit: http://vincom.com.vn

ABOUT WARBURG PINCUS
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $44 billion in private equity assets under management. The firm's active portfolio of more than 140 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 16 private equity funds which have invested more than $60 billion in over 800 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai and Singapore. For more information, please visit www.warburgpincus.com.

This release is not an offer for sale of the securities in the United States. The securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Neither Vincom Retail nor any seller of the securities intends to register any portion of the offering in the United States or to conduct a public offering of securities in the United States.

CONTACTS

Vincom Retail
Nguyen Phuong Linh
+8424 3974 9999 ext. 101
info@vingroup.net

Warburg Pincus
Mingxia Li
+86 10 59232569
Mingxia.li@warburgpincus.com

Photo - https://mma.prnewswire.com/media/598573/Warburg_Pincus.jpg

Source: Warburg Pincus
Related Stocks:
Vietnam:VRE
collection