Vietnam’s $58m Vinatex IPO ‘Exceeds Expectations’

Tuesday, 23/09/2014
Vietnam’s largest apparel manufacturer and exporter Vinatex raised VND1.22 trillion ($58 million) in an initial public offering on Monday, but the company’s shares may not start trading for years.

Vinatex—the Vietnam National Textile and Garment Group—said it sold 90% of the 122 million shares offered at the IPO at an average price of VND11,000 a share. The number of shares sold accounts for 24.4% of the company’s total shares.

“Given the current market conditions, the IPO is beyond our expectations,” Vinatex CEO Le Tien Truong told The Wall Street Journal.

In Vietnam, though, an IPO and a listing are separate processes. Mr. Truong would say only that the company will list its shares on the local stock exchange within the next three years.

Half of the shares offered at the IPO were sold to 12 corporate foreign investors and 18 individual foreign investors, the company said in the statement.

The government remains the company’s largest shareholder in the company after the IPO with a 51% stake, while the company’s two strategic partners are together holding 24%, the company added.

Theo The Wall Street Journal

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