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Vietnam: Vinhomes target US$2 billion share sale
The Hanoitimes – Vingroup, Vietnam`s biggest property developer, is targeting an initial equity offering (IEO) of as much as US$2 billion for its luxury residential arm, according to Bloomberg`s recent report.
Following the report, Vinhomes unit is considering seeking a valuation of US$13 billion to US$16 billion in the share sale.
Vinhomes, which began gauging demand for the offering on Tuesday, aims to finalize a list of cornerstone investors by the end of this week.
Singapore’s sovereign wealth fund Government (GIC) agreed to buy Vinhomes shares and extend the company a debt-like instrument in a US$1.3 billion deal ahead of the planned equity offering, according to a statement on Vingroup’s website dated April 16.
GIC is spending about US$850 million for a 7.1% stake that values the luxury developer at about US$12 billion.
A US$2 billion equity offering from Vinhomes would be by far the biggest first-time share sale ever in Vietnam, data compiled by Bloomberg show. It would surpass a planned US$922 million offering from Techcombank, which started taking orders last week. A deal last year from Vingroup’s mall unit Vincom Retail that raised about US$708 million is currently the biggest completed first-time share sale, the data show.
Vinhomes develops serviced apartments and villas in the country’s biggest cities. It is expected to start marketing the share sale around April 27, according to Bloomberg. The offering will be entirely composed of stock being sold by existing investors, according to terms for the deal obtained by Bloomberg on Tuesday. Vinhomes expects to price the offering early next month and start trading in mid-May, the terms show.
The Vingroup unit has not set final terms for the deal, and details could change depending on investor feedback.
Credit Suisse Group AG is among banks arranging the share sale.
Vinhomes operates 10 projects comprising nearly 18,000 apartments, villas and shophouses, according to Vingroup’s annual report. The properties include Vinhomes Royal City in Hanoi and Vinhomes Dong Khoi in Ho Chi Minh City.
GIC is one of the largest investors in Vietnam’s market, notably with investments in Masan Group (5% shares), Vietjet Air (5%), Vinamilk (0.7%), FPT (3.5%), Pan Group, Vinasun, and others, with total capital of nearly VND15 trillion (US$660 million).
In addition to Vinhomes, GIC is considering investments in Techcombank and Vietcombank.
Singapore’s sovereign wealth fund Government (GIC) agreed to buy Vinhomes shares and extend the company a debt-like instrument in a US$1.3 billion deal ahead of the planned equity offering, according to a statement on Vingroup’s website dated April 16.
GIC is spending about US$850 million for a 7.1% stake that values the luxury developer at about US$12 billion.
A US$2 billion equity offering from Vinhomes would be by far the biggest first-time share sale ever in Vietnam, data compiled by Bloomberg show. It would surpass a planned US$922 million offering from Techcombank, which started taking orders last week. A deal last year from Vingroup’s mall unit Vincom Retail that raised about US$708 million is currently the biggest completed first-time share sale, the data show.
Vinhomes develops serviced apartments and villas in the country’s biggest cities. It is expected to start marketing the share sale around April 27, according to Bloomberg. The offering will be entirely composed of stock being sold by existing investors, according to terms for the deal obtained by Bloomberg on Tuesday. Vinhomes expects to price the offering early next month and start trading in mid-May, the terms show.
The Vingroup unit has not set final terms for the deal, and details could change depending on investor feedback.
Credit Suisse Group AG is among banks arranging the share sale.
Vinhomes operates 10 projects comprising nearly 18,000 apartments, villas and shophouses, according to Vingroup’s annual report. The properties include Vinhomes Royal City in Hanoi and Vinhomes Dong Khoi in Ho Chi Minh City.
GIC is one of the largest investors in Vietnam’s market, notably with investments in Masan Group (5% shares), Vietjet Air (5%), Vinamilk (0.7%), FPT (3.5%), Pan Group, Vinasun, and others, with total capital of nearly VND15 trillion (US$660 million).
In addition to Vinhomes, GIC is considering investments in Techcombank and Vietcombank.
Source: http://www.hanoitimes.vn/investment/opportunities/2018/04/81E0C525/vinhomes-target-us-2-billion-share-sale/