Vingroup seeks to raise $1.08 billion from foreign investors

By Minh Son   March 13, 2019 | 05:34 am PT
Vingroup seeks to raise $1.08 billion from foreign investors
Vingroup's Vincom Center is seen in Distrct 1, Ho Chi Minh City. Photo by Shutterstock/Alex W.
Vietnam’s largest conglomerate Vingroup wants to increase its charter capital by selling stakes to five foreign investors.

It recently sought its shareholders' vote on a plan to raise at least VND25 trillion ($1.08 billion) through a private placement.

Vingroup plans to sell the shares at a minimum price of VND100,000 ($4.32) and stipulate a lockup period of one year, during which time the shares cannot be resold by the buyers.

It eyes the period between April and December for the stake sale, depending on the board’s final decision and authorities’ permission.

The group plans to use VND10 trillion ($432.34 million) of the proceeds to restructure its debts, VND6 trillion ($259.41 million) to invest in its auto company VinFast, technology firm VinTech and smartphone maker Vinsmart.

Vingroup (VIC) now trades at a lifetime high of VND120,000 ($5.19) per share on the Ho Chi Minh Stock Exchange.

It is Vietnam’s largest listed company by market capitalization and is worth VND378.5 trillion ($16.36 billion).

By the end of last year it had assets of over VND289 trillion ($12.5 billion) and charter capital of VND99 trillion ($4.28 billion).

Originally a real estate firm, Vingroup has expanded into manufacturing, education, healthcare, retail, and pharmaceuticals.

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