Warburg-backed Vincom Retail draws GIC to $680mn IPO

Bloomberg

Vincom Retail JSC, the Vietnamese mall operator backed by Warburg Pincus, has started taking investor orders for a domestic initial public offering that could raise as much as $680 million.
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 and Franklin Templeton Investments are among cornerstone buyers that have agreed to purchase about $382 million of stock, or 59 percent 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 percent this year.
Vincom Retail’s deal would be the largest-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 $422 million of first-time share sales so far this year, according to the data. The company aims to take orders through October 24 and price the deal October 26, before it starts trading November 6, the terms show. Citigroup Inc., Credit Suisse and Deutsche Bank AG are among banks arranging the sale.
Other cornerstone investors in the offering include Genesis Investment Management LLP, HSBC Global Asset Management and London-based fund manager TT International, according to Monday’s terms.
Warburg Pincus led a group that bought a 20 percent stake in Vincom Retail in 2013, in the US private equity firm’s first deal in Vietnam.