Vin­group to tar­get US$2bil in lux­ury home spin-off

Vin­homes seek­ing val­u­a­tion of up to US$16bil

The Star Malaysia - StarBiz - - Foreign News -

SIN­GA­PORE: Vin­group JSC, Viet­nam’s big­gest de­vel­oper, is tar­get­ing an ini­tial eq­uity of­fer­ing of as much as US$2bil for its lux­ury res­i­den­tial arm, peo­ple with knowl­edge of the mat­ter said.

The Hanoi-based group’s Vin­homes JSC unit is con­sid­er­ing seek­ing a val­u­a­tion of US$13bil to US$16bil in the share sale, ac­cord­ing to one of the peo­ple, who asked not to be iden­ti­fied be­cause the in­for­ma­tion is pri­vate.

Vin­homes, which be­gan gaug­ing de­mand for the of­fer­ing yes­ter­day, aims to fi­nalise a list of cor­ner­stone in­vestors by the end of this week, the per­son said.

A US$2bil deal would be by far the big­gest first-time share sale ever in Viet­nam, data com­piled by Bloomberg show. It would sur­pass a planned US$922mil of­fer­ing from Tech­com­bank, which started tak­ing or­ders last week.

A deal last year from Vin­group’s mall unit Vin­com Re­tail JSC that raised about US$708mil is cur­rently the big­gest com­pleted first-time share sale, the data show.

Vin­homes de­vel­ops ser­viced apart­ments and villas in the coun­try’s big­gest cities.

It may start mar­ket­ing the share around April 27, the per­son said.

The of­fer­ing will be en­tirely com­posed of stock be­ing sold by ex­ist­ing in­vestors, ac­cord­ing to terms for the deal ob­tained by Bloomberg on Tues­day.

Vin­homes ex­pects to price the of­fer­ing early next month and start trad­ing in midMay, the terms show.

Sin­ga­pore sovereign wealth fund GIC Pte agreed this month to buy Vin­homes shares and ex­tend the com­pany a debt-like in­stru­ment in a US$1.3bil deal, ac­cord­ing to a state­ment posted on Vin­group’s web­site on Mon­day.

GIC also par­tic­i­pated in last year’s of­fer­ing from Vin­com Re­tail and has agreed to buy stock as a cor­ner­stone in­vestor in Viet­namese sale lender Tech­com­bank’s IPO.

The Vin­group unit hasn’t set fi­nal terms for the deal, and de­tails could change de­pend­ing on in­vestor feed­back, the peo­ple said.

Vin­group vice chair­woman Le Thi Thu Thuy didn’t re­spond to phone calls and a mo­bile-phone text mes­sage seek­ing com­ment, while a rep­re­sen­ta­tive for Vin­group said she couldn’t com­ment.

Credit Suisse Group AG is among banks ar­rang­ing the share sale.

Vin­homes op­er­ates 10 projects com­pris­ing nearly 18,000 apart­ments, villas and shop­houses, ac­cord­ing to Vin­group’s an­nual re­port.

The prop­er­ties in­clude Vin­homes Royal City in Hanoi and Vin­homes Dong Khoi in Ho Chi Minh City. — Bloomberg

Viet­nam real estate: Work­ers labour at a res­i­den­tial con­struc­tion site in Ho Chi Minh City, Viet­nam. Vin­homes de­vel­ops ser­viced apart­ments and villas in the coun­try’s big­gest cities. — Bloomberg

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