Vietnam's Biggest-Ever Initial Public Offering Prices at Top

(Bloomberg) -- Vincom Retail JSC’s existing investors raised 16.1 trillion dong ($709 million) after pricing an initial public offering of the Vietnamese mall operator at the top end of a marketed range.

Existing shareholders including Warburg Pincus and Credit Suisse Group AG priced 396.5 million shares at 40,600 dong apiece, according to terms for the deal obtained by Bloomberg. The stockholders initially offered 380.2 million shares at 37,000 dong to 40,600 dong each, earlier terms for the sale show.

The deal from the arm of Vietnam’s largest developer Vingroup JSC is the country’s biggest-ever first-time share sale, according to data compiled by Bloomberg. The benchmark Ho Chi Minh Stock Index this month hit its highest level since 2008, while the Asian Development Bank forecasts the nation’s economy will expand 6.3 percent this year.

Vincom Retail will be listed before existing shareholders officially sell the shares on the bourse, a process the company and selling shareholders call an initial equity offering, instead of an IPO. The company aims to begin trading Nov. 6, the terms show.

Warburg Pincus led a group that bought a 20 percent stake in Vincom Retail in 2013, in the U.S. private equity firm’s first deal in Vietnam. It completed another $100 million investment two years later. Vincom Retail owns shopping centers including Vincom Mega Mall Royal City and Vincom Mega Mall Times City.

Citigroup Inc., Credit Suisse and Deutsche Bank AG are among banks arranging the sale.

©2017 Bloomberg L.P.