The Hanoitimes - Vinhomes, the residential property developer of Vingroup has been listed in Ho Chi Minh Stock Exchange (HoSE) on May 17.
Vinhomes listed nearly 2.68 billion shares with the starting price of VND92,100 (US$4.04) apiece, taking the company's market capitalization to over VND246.7 trillion (US$11 billion).
Consequently, Vinhomes has overcome Vietnam Dairy Products (Vinamilk) with market capitalization of VND245.4 trillion (US$10.8 billion) to become the second largest listed companies after Vingroup.
Vinhomes become Vietnam's second largest listed company.
In the first trading session, Vinhomes' share could go up to the maximum of 20% value to VND110,500 (US$4.87) per share, equivalent to market capitalization of VND300 trillion (US$13.21 billion).
In first quarter, Vinhomes posted its revenue at over VND10 trillion (US$439 million), 3 times higher than last year`s same period, said its quarterly financial statement.
The company's after-tax profit stood at VND3.98 trillion (US$174.5 million), 5 times higher year on year.
The luxury villa and serviced apartment development of Vietnam's biggest property developer Vingroup also increased its charter capital from VND2 trillion (US$87.7 million) to VND26.8 trillion (US$1.17 billion), informed Ho Chi Minh Stock Exchange (HoSE). Vingroup currently owns 69.67% of Vinhomes' charter capital.
By the end of 2017, Vinhomes' total assets worth VND51.3 trillion (US$2.24 billion), which has increased to VND95 trillion (US$4.16 billion) by the end of the first quarter in 2018.
Founded in 2014, Vinhomes offers serviced apartments and villas to residents in the country's biggest cities. It now owns many brands Vinhomes Royal City (Hanoi); Vinhomes Times City (Hanoi); Vinhomes Riverside (Hanoi); Vinhomes Dong Khoi (Ho Chi Minh City).
Formerly known as Hanoi Southern City Development, Vinhomes has cancelled its registration on the Unlisted Public Market Company (UPCoM) in mid 2017, due to the fact that the company was no longer a public company. In early 2018, Hanoi Southern City Development increased its equity from VND2 trillion (US$87.6 million) to VND28.3 trillion (US$1.2 billion) and renamed to Vinhomes.
The increase in equity was facilitated through the merging of VIC's two subsidiaries, namely Tan Lien Phat Construction Investment and Vinhomes Management. Tan Lien Phat Construction Investment was the project owner of Vinhomes Central Park in Ho Chi Minh and some other projects.
The IPO of Vinhomes would follow last year's listing of Warburg Pincus-backed Vincom Retail, Vietnam's biggest shopping mall operator and also a unit of Vingroup, which raised roughly US$700 million.
The deal has been honored by the Finance Asia magazine as "the Best Private Equity Deal" in 2017. This is also the first ever equity deal of a Vietnamese enterprise being honored in this category, which has contributed to heightened status of Vietnam in the global equity market.