Vingroup's retail unit launches up to $713 million IPO, Vietnam's largest: report

Vincom Retail, the shopping mall subsidiary of Vingroup, launched on Monday Vietnam’s largest-ever initial public offering (IPO), in a deal worth up to $713 million, International Financial Review reported, citing a term sheet of the deal.

The IPO consists of 380.22 million shares in the institutional tranche and another 19 million for the retail tranche, offered in an indicative range of VND37,000 to 40,600 ($1.63-1.79) each, added IFR, a Thomson Reuters publication.

That would put the offering at up to VND16.2 trillion ($713 million), with all proceeds going to Vincom Retail’s private equity investors and other shareholders.

Vingroup did not immediately responded to a request for comment on the IPO terms.

Vincom Retail JSC, the Vietnamese mall operator backed by American private equity firm Warburg Pincus, has expanded its portfolio from fewer than five properties to around 40 malls totaling 1.1 million square meters (11.8 million square feet) since 2013, Bloomberg said in a report.

The company has more than 60 percent market share in the country’s modern retail industry, it said.