Vincom Retail, the retail arm of the real estate conglomerate Vingroup, will debut on the HCM Stock Exchange on November 6. (Photo Vingroup)
 
HCM City (VNA) - Vincom Retail, the retail arm of the real estate conglomerate Vingroup, will debut on the Ho Chi Minh Stock Exchange on November 6.

Vincom Retail will trade more than 1.9 billion shares on the southern bourse coded VRE at a debut price of 33,800 VND (1.5 USD) per share. Share prices have a range of movement of 20 percent on the first day of trading.

At that price, the company’s market capitalisation will reach 64.25 trillion VND, equal to 2.8 billion USD, making it among the top 20 largest companies by market capitalisation in Vietnam.

The firm has charter capital of 19 trillion VND (around 837 million USD) and is the operator of Vingroup’s 41 commercial centres with popular brands like Vincom Center, Vincom Mega Mall and Vincom Plaza.

The operation of commercial centres is among the most profitable segments of Vingroup. According to the corporation’s first-half financial report, the retail segment contributed some 2.88 trillion VND (128.6 million USD) in revenue and 1.45 trillion (63.8 million USD) in pre-tax profit for Vingroup.

Bloomberg reported in August that Vincom Retail held about 60 percent of total market share in the Vietnamese retail sector.

Vincom Retail has two foreign shareholders – Warburg Pincus and Credit Suisse AG – which own 15.17 percent and 5.06 percent of the mall operator, respectively.

In August, Bloomberg reported that Vincom Retail was planning a domestic initial public offering worth some 600 million USD, which could become Vietnam’s largest-ever share sale in the private sector.

The last debut offering that topped 100 million USD was from local budget airline VietJet Aviation JSC at the end of 2016.

Reuters on October 15 reported that Vincom Retail “launched its IPO in a deal worth up to 713 million USD,” which consisted of  “380.2 million shares in the institutional tranche and another 19 million for the retail tranche, offered in an indicative range of 37,000-40,600 VND per share.”-VNA