Thrust felt in Vietnamese IPO strategies

Businesses are pressing ahead with plans for local listings, signalling strong momentum in Vietnam’s initial public offering activity this year.

- By Bui Thanh

Last week, Vietnamese consumer finance company F88 unveiled its plan to sell 10 per cent of its shares in the initial public offering (IPO) this year. The offering price will be set at no lower than the book value of VND22,240 (86 US cents) apiece, or no less than 70 per cent of the average price of its five consecutive trading days before the IPO.

The move aims to facilitate the company’s expansion and business development. The proceeds will be used to contribute capital to its subsidiary, F88 Business JSC, specifically supporting its pawnshop service segment.

Phung Anh Tuan, chairman of the board at F88, said, “The value of proceeds will depend on the timing of the IPO. At that time, the market price of the shares will determine how much capital we are able to raise.”

Also in mid-March, electronics retailer Dien May Xanh announced its planned IPO later this year. By selling approximately 180 million shares, or more than 16 per cent stakes, the company aims to raise at least VND2.9 trillion ($115 million) from the IPO.