Investors at an IPO ceremony in HoSE's building earlier this year (Photo: VNA) Amid uncertainties in the global and domestic markets, businesses and investorsare more cautious in the second half of the year, Bui Van Trinh, Deputy GeneralDirector of Audit & Assurance Services at Deloitte Vietnam, toldbaodautu.vn.
In the first half of 2022, there were only six successful IPOs totalling 65.05million USD. Ton Dong A, Nova, and Green were the three major agreements outof those. Deloitte Vietnam was waiting for some blockbuster IPO deals that werealready planned, Trinh said.
Meanwhile, for more than ten months this year, Thailand and Indonesia toppedthe Southeast Asian region in terms of IPOs. Each country mobilised over 2billion USD, accounting for 76% of the total mobilised money in the region.
Thailand saw the highest amount of IPO capital raised among exchanges inSoutheast Asia, with a total of 2.5 billion USD raised through IPOs. Fundsraised this year are on par with those raised between 2017 and 2019 (over 2billion USD annually), which is a sign that things are back to pre-pandemiclevels.
Notably, foreign investors, who were absent during the pandemic years, arereturning to invest in the Thai stock market this year.
Earlier this year, experts predicted that the number of IPO listings wouldremain stable throughout Southeast Asia. But until now, the amount has halvedcompared to the previous year.
The region's IPO markets, in particular, are focused on smaller-scale listings.According to Deloitte data, to date, companies in the region have raised 6.3 billionUSD from 136 IPOs, while they raised 13.3 billion USD from 152 IPOs during thesame period in 2021.
Small businesses are more in need to raise capital amid the current challengingmarket, according to Deloitte experts. It is forecast that in 2023, the wholeregion will not see many massive IPO deals.
In the Vietnamese market, investors and consultants are paying attention tosome deals. Typically, VinFast, a member of Vingroup, is considering an IPO inthe US market in January 2023 at the earliest. The company can raise at least 1billion USD from the IPO, but everything depends on the interest rate.
Currently, VinFast is negotiating with investors and reviewing the marketsituation to determine a specific IPO time. In April, VinFast filed for an IPOin the US.
Le Thi Thu Thuy, Vice Chairwoman of Vingroup and VinFast Global CEO, stated inNovember 2021 that when VinFast files for an IPO in the United States, it willonly sell 5-10% of its shares. VinFast's value may reach 25 billion USD to 60billion USD after the IPO.
In July, VinFast signed an agreement with banks to raise capital of at least 4billion USD for an expansion plan in the US.
Two brands in the field of e-commerce and logistics, Tiki and GiaohangtietkiemJSC, also attracted interest from many foreign investors.
Specifically, Tiki plans to list in the US in 2025, but founder Tran Ngoc ThaiSon wants to push this plan up by a year. A SPAC or a merger with aprofessional acquirer can be used for the IPO.
A successful IPO in the US can bring great benefits in terms of raising capitalfor the company. Tiki may open the door for more international investment inthe developing Vietnamese technology sector if the IPO is a success.
Shinhan Financial Group became Tiki's third-largest shareholder in May afterbeing a strategic partner in purchasing 10% of the company's shares, allowingTiki to accelerate its US IPO plan.
Tiki successfully raised 258 million USD last November in an investment roundled by AIA Insurance. The purpose was to expand the e-commerce market share,and serve the IPO plan in the future. Its former investors include SumitomoCorp, JD.com and Northstar Group.
Meanwhile, Giaohangtietkiem is also aiming for a domestic IPO later this yearor early in 2023 to raise capital and cope with increasing competition in thelogistics industry. The delivery’s valuation is up to 1 billion USD.
Clearly, the COVID-19 pandemic has prompted many retail investors toparticipate in the stock market. Increases in interest rates can encourage manycompanies with a solid business foundation to seek listing, utilising the stockmarket to diversify and lower their investment sources./.
VNA
