20/12/2018 09:25 GMT+7 Email Print Like 0

Vinhomes IPO honoured by Asian finance media

The initial public offering of Vinhomes, the residential realty arm of property and retail giant Vingroup, in May 2018 has been honoured the best share issuance deal of the year in Asia and Vietnam by overseas media.

The 1.35 billion USD deal was recognised as the Frontier Markets Equity Issue 2018 by the International Financing Review Asia (IFR Asia), the Best IPO in Vietnam by The Asset, and the Best Vietnam Deal by the Finance Asia.

On May 18, Vinhomes JSC sold nearly 268 million shares via put-through transactions on the Ho Chi Minh Stock Exchange (HoSE).

The deal lured big attention from both domestic and foreign investors as the number of shares asked by potential investors was fourfold the amount of shares offered for sale by Vinhomes.

The value of the deal was 30.7 trillion VND (1.35 billion USD) and it was the biggest deal in the last two years, exceeding the IPO values of other firms such as VPBank, Techcombank, budget carrier Vietjet and Vincom Retail.

Since Vinhomes IPO, Vinhomes and Vingroup are the two largest companies by market capitalisation in Vietnam. The two firms are listing on HoSE with code VHM and VIC, respectively.

This is the second year in a row Vingroup has its member companies honoured on the global equity market since its listing on the HoSE on July 1, 2007.

In 2017, Vingroup’s retail arm Vincom Retail won the Best Private Equity Deal and Best Frontier Market Transaction awards from Finance Asia and IFR Asia.

In the first three quarters, Vingroup earned total 84 trillion VND in revenue and 3.3 trillion VND in post-tax profit, up 47.2 percent and 11.2 percent year on year.

In the same period, Vinhomes recorded 22.4 trillion VND in revenue and 12.2 trillion VND in post-tax profit, up 86 percent and nearly 400 percent, respectively.

Vingroup in 2018 issued 84 million preferred shares in a private placement deal to the Republic of Korea-based Hanwha Asset Management Corporation. The value of the deal was 9.3 trillion VND and the deal was considered by The Asset as the best M&A and share issuance deals in Vietnam.