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‘Vinhomes gears up for IPO’
Posted on Tuesday, 17 April 2018 09:48
Vingroup is spinning off its luxury residential arm via an initial public offering (IPO) that Zephyr, the M&A database published by Bureau van Dijk, shows would be Vietnam’s largest on record.
At a reported value of USD 1.00 billion to USD 2.00 billion, the listing of Vinhomes will top that of Vietnam Technological and Commercial.
The bank launched its first-time share sale last week by offering shares in a price range that is expected to raise between USD 864.00 million and USD 922.00 million.
Founded in 2014, IPO hopeful Vinhomes develops serviced apartments and villas for residents in Vietnam’s largest cities.
Owned brands include Vinhomes Royal City (Hanoi); Vinhomes Times City (Hanoi); Vinhomes Riverside (Hanoi); Vinhomes Dong Khoi (Ho Chi Minh City).
According to the 2016 annual report of diversified conglomerate Vingroup, Vinhomes now operates ten projects with nearly 18,000 apartments, villas and other mixed-use residential real estate.
Development comprise playgrounds, sports centres, swimming pools, lounges, education services and healthcare facilities, among other things.
Vinhomes submitted an application to list on Ho Chi Minh’s bourse at the beginning of April and has also entered into an agreement with Singapore sovereign wealth fund GIC this month.
The deal comprises the purchase of ordinary shares from certain shareholders and the extension of a debt-like instrument to the luxury property developer, together valued at USD 1.30 billion.
GlobalCapitalAsia reported that pre-marketing for a USD 1.00 billion IPO kicked off today and will last until 26th April, with the management roadshow launching at the end of the month.
Meanwhile, sources close to the process told Bloomberg Vinhomes is aiming to raise up to USD 2.00 billion via a sale of existing share – giving a value of USD 13.00 billion to USD 16.00 billion.
The news provider said it obtained a term sheet that indicated the developer is expected to set a price in early May to start trading in the middle of the month.
© Zephus Ltd