Latham & Watkins Advises Vincom Retail and Warburg Pincus Affiliate on Landmark International Equity Offering Utilizing Innovative Offer Structure

Deal represents Vietnam’s largest ever initial equity offering (IEO) on the Ho Chi Minh City Stock Exchange.

November 09, 2017

Vincom Retail, the largest retail property developer, owner and operator in Vietnam, has announced the completion of trading of approximately 415 million shares, raising an equivalent of over US$740 million for the existing shareholders, and making it the country’s largest ever initial equity offering (IEO) on the Ho Chi Minh City Stock Exchange.

The transactions today represented 21.8% of the total number of issued shares of Vincom Retail. At the trading price of VND40,600 per share, Vincom Retail is valued at more than VND77,000 trillion, or US$3.4 billion. This makes Vincom Retail one of the top 10 listed companies on the stock exchange, following the company’s domestic listing on November 6, 2017, as the first Vietnamese shopping mall developer and operator to list its stock. Shares are expected to be delivered to investors’ accounts at the close of business on November 9, 2017, and investors will be free to trade those shares from November 10, 2017.

The offering has widened Vincom Retail’s world-class investor base and the listing also gives public investors access to Vietnam’s fastest-growing retail operator. Anne Pham, Chief Investment Officer at Vingroup, commented: “We are very happy with the successful commercial outcome of this transaction and remain laser-focused on Vincom Retail’s expansion plan to be the leading national retail mall operator in Vietnam. We believe the real estate, retail and consumer industries in Vietnam offer tremendous untapped investment potential as Vietnam’s middle class continues to grow and we are committed to delivering long-term value to our shareholders.”

Jeffrey Perlman, Managing Director and Head of Southeast Asia at Warburg Pincus added: “This was truly a landmark transaction for Vietnam. Vincom Retail’s offering will enhance the HOSE’s overall market capitalization and open up investment opportunities for domestic and international investors in the retail and real estate sectors. We are especially grateful to the Latham & Watkins team for devising an innovative deal structure (especially in relation to the significantly reduced settlement period which was critical for international investors), which enabled us to execute this complex transaction in a timely and cost-efficient manner.”

The Latham & Watkins team was led by Hong Kong partner Amy Beckingham and Singapore partner Sharon Lau, with support from Singapore associates Basil Al-Jafari and Alison Joseph and Hong Kong associates Maurice Conway, Edward Tang and Bing Xi Sia.

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