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(Bloomberg) -- Vincom Retail JSC, the Vietnamese mall operator backed by Warburg Pincus, has started taking investor orders for a domestic initial public offering that could raise as much as $680 million.
Existing shareholders including Warburg Pincus and Credit Suisse Group AG are offering a combined 380.2 million shares at 37,000 dong to 40,600 dong apiece, according to terms for the deal obtained by Bloomberg. Singapore sovereign fund GIC Pte and Franklin Templeton Investments are among cornerstone buyers that have agreed to purchase about $382 million of stock, or 59 percent of the base offering, assuming the deal prices at the midpoint.
The company, an arm of Vietnam’s largest developer Vingroup JSC, is raising funds as economic growth in the country lifts living standards and increases shoppers’ disposable incomes. 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’s deal would be the largest-ever share sale from the Vietnamese private sector, according to data compiled by Bloomberg. Even at the low end of the price range, the offering would push the country’s IPO market to its highest volume in a decade, the data show. Vietnam has hosted $422 million of first-time share sales so far this year, according to the data.
The company aims to take orders through Oct. 24 and price the deal Oct. 26, before it starts trading Nov. 6, the terms show. Citigroup Inc., Credit Suisse and Deutsche Bank AG are among banks arranging the sale.
Other cornerstone investors in the offering include Genesis Investment Management LLP, HSBC Global Asset Management and London-based fund manager TT International, according to Monday’s terms. Avanda Investment Management Pte, the Singapore money manager co-founded by former GIC group chief investment officer Ng Kok Song in 2015, and Vietnamese investment firm Dragon Capital have also committed to invest in the IPO.
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.
Since Warburg Pincus’s initial investment, Vincom Retail has expanded its portfolio from fewer than 5 properties to around 40 malls totaling 1.1 million square meters (11.8 million square feet), people familiar with the matter said in August. It has more than 60 percent market share in the country’s modern retail industry, the people said.
(Updates with details about Vincom’s portfolio in last paragraph.)
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