Warburg-backed Vincom Retail eyes US$600m via IPO

HANOI: Vincom Retail, the Vietnamese mall operator backed by Warburg Pincus, is planning a domestic initial public offering (IPO) that could become the country’s biggest-ever share sale from the private sector, said people with knowledge of the matter.

The unit of Vingroup JSC had selected investment banks to work on the offering and aimed to sell shares as soon as this year, according to the people.

It aimed to raise about US$600 million (RM2.57 billion), which might include a sale of existing shares as well as new stock, said the people.

Vincom Retail is preparing to raise funds as economic growth in Vietnam raises living standards and increases shoppers’ disposable incomes.

The Asian Development Bank forecasts the nation’s economy will expand 6.3 per cent this year.

A US $600 million offering would also be the country’s largest IPO in a decade, trailing only the 2007 share sale from Bank for Foreign Trade of Vietnam JSC. Bloomberg