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If successful, this IPO could become the country’s biggest share sale in a decade and the second-largest one ever in the country.
Vingroup’s Mall Arm Plans Biggest-in-Decade IPO
Vincom Retails plans to launch a $600-million IPO this year.
Vincom Retail, the mall subsidiary of real estate developer Vingroup, has plans to launch a domestic initial public offering (IPO) that may become a big-ticket deal with a value of up to $600 million, Bloomberg cited people with knowledge of the matter as saying.
If successful, this deal could become the country’s biggest share sale in a decade and the second-largest IPO ever in the country.
Vincom Retail has selected investment banks to work on the share sale and plans to sell shares as soon as this year, the people said, adding the company aims to raise about $600 million, which may include a sale of existing shares as well as new stock.
The exact size of the Vincom Retail offering hasn’t been set yet, and the timetable for the listing could slip, the people said.
The $650-million IPO of Bank for Foreign Trade of Vietnam JSC (Vietcombank) in December 2007 has so far been the biggest one in Vietnam. The last first-time share sale that topped $100 million came from VietJet Aviation JSC, which runs budget carrier VietJet Air.
The IPO of Vincom Retail comes in the context of Vietnamese people’s disposable incomes growing steadily thanks to a long period of thriving economy. The benchmark VN Index of the Hochiminh Stock Exchange has recently hit a fresh nine-year record. The country’s economic growth is projected to stay above 6.3% this year.  
A Warburg Pincus-led consortium in 2013 bought a 20% stake in Vincom Retail for $200 million. The U.S. private equity firm poured another $100 million into the company two years later.
Since Warburg Pincus’s initial investment, Vincom Retail has expanded its portfolio from fewer than five properties to around 40 malls totaling 1.1 million square meters.

TUAN MINH