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UPDATE 1-Vingroup's retail unit to list on Nov 6 after raising $709 mln in IPO
October 27, 2017 / 8:53 AM / in 2 months

UPDATE 1-Vingroup's retail unit to list on Nov 6 after raising $709 mln in IPO

* Vincom Retail’s IPO the country’s biggest

* Reference price for listing lower than IPO price (Adds details, background)

By Nguyen Mi

HANOI, Oct 27 (Reuters) - Vietnamese conglomerate Vingroup’s retail business will debut on the main stock exchange on Nov. 6, a listing document showed on Thursday, after it raised nearly $709 million in an initial public offering, the country’s biggest float.

Shares of Vincom Retail, which runs Vingroup’s malls across Vietnam, will have a reference price of 33,800 dong a share ($1.49 each) on listing day on the Ho Chi Minh Stock Exchange, the document showed.

Share prices have a band of 20 percent on the first day of trading. That would allow prices to fluctuate within 22,040-40,560 dong a share on Nov. 6.

In Vietnam, IPOs and listings are two separate processes.

Vingroup remains the major shareholder in Vincom Retail and did not sell any shares in the IPO.

When contacted, a representative for Vingroup declined to comment, since Vingroup was not a seller in the deal.

The reference price was much lower than the pricing of its IPO at 40,600 dong a share, with analysts saying that was a concern for retail investors.

The IPO price was at the top end of the range set out by sellers, said a source with direct knowledge of the deal, who is not authorised to speak to the media.

Vincom Retail’s IPO valued the mall operator at about $3.4 billion, the source said.

WP Investments III, owned by U.S. private equity firm Warburg Pincus, Credit Suisse and other individual shareholders were the vendors.

In 2013 and 2015, Warburg Pincus led investments of a combined $300 million in Vincom Retail.

$1 = 22,718 dong Reporting by Mi Nguyen; Editing by Biju Dwarakanath

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