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Vinhomes JSC, the residential property developer of Vietnam’s biggest conglomerate Vingroup, saw its share price rise 20 percent from VND92,100 to VND110,500 ($4.85) per share in its first trading session after it was officially listed on the Ho Chi Minh Stock Exchange (HoSE) on Thursday morning.
The company put 2.68 billion shares on Vietnam’s main bourse HoSE, and by Thursday afternoon, its market cap jumped to more than VND296 trillion ($12.9 billion).
This means Vinhomes is now the company with second biggest market cap on the country’s stock market, standing behind its parent Vingroup, which is currently valued at VND333 trillion.
An initial equity offering of Vinhomes JSC, the residential property development unit of Vingroup JSC, raised about $1.35 billion in Vietnam’s biggest ever issue, sources said earlier this month.
Existing Vinhomes investors were selling about 268 million shares, or 10 percent of the firm’s equity capital, at VND114,700 ($5.03) each, versus an indicative range of VND110,500-114,700, said the sources, who are familiar with the matter but did not want to be named as terms of the pricing were confidential.
This eclipsed an equity offering from Vietnam Technological and Commercial Joint Stock Bank, or Techcombank, which raised about $920 million last month.
Vingroup JSC has been looking to raise as much as $2 billion from the listing of Vinhomes.
Last month, Singapore wealth fund GIC came in as a pre-IPO investor and took a roughly 7 percent stake in Vinhomes for about $853 million by buying shares from Vingroup and other shareholders, sources said.
Vinhomes’ first-quarter net profit jumped five times from the same period last year to VND3.99 trillion, and revenue surged three times to VND10.54 trillion, its financial statements showed.
