Category: IPO

Vincom Retail launches Vietnam’s largest IPO worth up to US$713 million

Vincom Retail, the shopping mall subsidiary of Vingroup has launched Vietnam’s largest-ever initial public offering (IPO), in a deal worth up to US$713 million.

The largest shopping mall operator in Vietnam, Vincom Retail owns 41 commercial centers throughout the nation. Its popular brands include Vincom Center, Vincom Mega Mall, Vincom Plaza, and Vincom+.

The IPO will take place on the HCM Stock Exchange (HOSE) consisting of 380.22 million shares for institutional investors and another 19 million for retail investors.

Meanwhile, the price range for the shares are set in an indicative range of 37,000 to 40,600 dong apiece, which translates to about US$1.63 to US$1.79.

This would place the offering at up to 16.2 trillion dong (about US$713 million) with all proceeds going to Vincom Retail private equity investors and other shareholders.

According to Bloomberg, Singapore sovereign fund GIC Pte and Franklin Templeton Investments are among cornerstone buyers that have agreed to purchase about $382 million of stock, or 59 percent of the base offering.

At present, Vincom Retail has two foreign shareholders – Warburg Pincus and Credit Suisse AG – which owns 15.7 percent and 5.06 percent of the mall operator respectively.

Even before the IPO, the operations of Vincom Retail has been among the most profitable segments in VinGroup.

According to the company’s first-half financial report, the business line has earned more than 2.88 trillion dong (about US$126.78 million) in revenue for the first six months.

Indonesia startup M Cash Integrasi set to IPO in November

After announcing its plans for a year-end IPO back in May, Indonesia’s ecommerce startup M Cash Integrasi (MCI) is now revealing its IPO price at between Rp 1,300 and Rp 1,405 (about US$0.097 to US$0.11).

The startup is set to list on the Indonesian Stock Exchange (IDX) in November, where it will be offering up to 216 million shares, which is equivalent to 25 percent of its paid-up capital.

If successful, the company will raise up to Rp 300 billion (about US$22 million) in fresh funds which will be used for business expansion and working capital requirements.

M Cash Integrasi will also become the second startup to be listed on the IDX after Kioson, an O2O e-commerce service company who is a rival to Grab’s Kudo.

Currently, the company has also reportedly receive a strong response to its anchor book, driven by the market’s optimism about the technology space in the country.

“So far, we are open to strategic partners who want to enter, and many strategic partners and funds have expressed interest in M Cash,” Suryandy Jahja said.

According to Kresna’s managing director Suryandy Jahja, the company has received strong anchor book interest from investors in Hong Kong, Singapore, Australia, United Kingdom, and the United States.

“We want to make sure that the anchors will be good names, so well will be very, very selective,” Jahja added.

Although the anchor book allocation period was closed last Wednesday, other investors can still place their bookings from October 5 until October 19.

Founded in 2010, M Cash Integrasi generate physical cards such as mobile SIM and e-money with automatic registration, in addition to other services including credit top-up, routine bill payment, and e-commerce transactions.

M Cash Integrasi said it is already profitable in business, having reported a revenue of Rp 480 billion (about US$73 million) in 2016.

Kresna Graha investment currently owns 17.6 percent of shares in the company. By the end of the year, the investment firm will help MCI launch 1000 outlets, and double that number in 2018.

Japan’s fintech startup Money Forward gets IPO approval

Japan’s Money Forward, a leading SaaS (Software as a Service) accounting startup announced that its IPO application to the Tokyo Stock Exchange (TSE) board has been approved.

From 29th September onwards, the fintech startup will be listed on the TSE Mothers Market offering 1,617,700 shares for public subscription and to sell up to 382,000 shares in over-allotment options, for a total of 931,000 shares.

SMBC Nikko Securities is appointed as the lead underwriter and the company’s market capitalization is expected to be between 10 billion yen to 20 billion yen.

According to Money Forward, the capital raised from the IPO will be spent on boosting sales offices and its expanding operations.

Founded in May 2012, Money Forward was initially known as Money Book. The company has been providing an automated household account and asset management service platform.

Users can simply register their bank accounts, credit cards, and electric money – to check and easily manage their daily expenses and account balances. The service is also made available for businesses to file taxes and prepare financial statements.

To date, the app has gained enormous popularity with more than 5 million users.

In November 2016, the company lead by CEO Yosuke Tsuji logged sales of about 1.54 billion yen (US$14.1 million) and a net loss of about 880 million yen (US$8.1 million). Currently, the cost of opening sales offices and advertising are weighing on profits.

Aside from Money Forward, it is estimated that about 80 to 90 companies will go public this year. Flea market app operator Mercari is also expected to debut later in 2017.

Jollibee gains control over SuperFoods Group ahead of Vietnam IPO

Philippine’s homegrown fast food giant Jollibee Foods Corp (JFC) said on Thursday that its subsidiary JSF Investments Pte. Ltd has hiked its stakes in SuperFoods Group to 60 percent.

The 10 percent increase from its previous 50-50 ownership share comes from its partner in the joint venture, Viet Thai International Joint Stock Co. (VTI).

This move lies in line with the agreement dated back on November 18, 2016, which will allow JFC to include the joint venture in its financial consolidation and in turn facilitate the listing of SuperFoods Group on Vietnam’s equities market by July 2019.

“To help fund the SuperFoods’ expansion plans, Jollibee Foods Corporation will henceforth take the lead in the capital raising activities of the joint venture and will work with various financial institutions in Vietnam and other parts of Asia in this undertaking,” Jollibee said in a statement.

SuperFoods is a wholly-owned subsidiary of Jollibee’s JSF Investments Pte Ltd (JSF), and Viet Thai International Joint Stock Co. (VTI) with most of its businesses in Vietnam.

The SuperFoods Group owns and operates the brands Highlands Coffee and Vietnamese noodle house Pho 24, as well as the Hard Rock Cafe franchise shops in Vietnam, Macau, and Hong Kong. At the end of March, these three brands amount for a total of 216 stores with its presence across 17 countries outside the Philippines, including Indonesia, Cambodia, and Australia.

In the next three years, the SuperFoods Group plans to open another 485 stores, mostly in Vietnam, while expanding the brands through franchising in other parts of Asia and in Australia. The company also plans to enter Malaysia as part of its expansion in Southeast Asia.

JFC plans to build a significant business in Vietnam given its potential to become a large consumer market. Like the Philippines, Vietnam has a high population at 95 million and has enjoyed robust economic growth, which reached a 6.2 percent growth last year.

The SuperFoods joint venture is one of its fastest-growing businesses, with its sales reaching US$58 million in 2016, that is up to 46 percent from the prior year, driven by the 73 percent expansion of the Highlands Coffee.

JFC operates the largest foodservice network in the Philippines. At the end of March, it had 2,684 restaurant outlets under the brands Jollibee, Chowking, Greenwich, Burger King, and Mang Inasal. Abroad, it operated 620 restaurants including the brands Yonghe King, Hong Zhuang Yuan, and Dunkin’ Donuts.

JFC maintains interest in joint ventures operating 611 stores worldwide. Aside from its interest in SuperFoods, it also has 40 percent ownership of US chain Smashburger and 48 percent of 12 Hotpot.

By Vivian Foo, VCNewsNetwork

Chinese short video mobile app maker Miaopai likely to IPO later this year

Yixia Technology, a Beijing-based developer behind Chinese top video blogging app Miaopai is getting ready for a U.S. initial public offering (IPO) later this year.

The company is reportedly going to appoint a senior management team next month, which further advocate news about its listing.

According to sources, “They are planning to get listed in the second half of this year, most likely in the U.S. market given that Weibo, a major investor of Yixia Technology is listed on NASDAQ.”

However, not much information has been revealed about the IPO timetable, as sources explained that on one hand, the board hasn’t reached a consensus. While another reason being that they would like to progress gradually as circumstance could change in big deals like this.

Additionally, rumors surrounding Yixia Technology’s IPO has been around for some time. As prior to this, several Series C investors of the company, the founder of StarVC as well as Zhou Wei, partner of KPCB, has discussed the firm’s IPO plans.

Founded in 2011, Yixia Technology is one of the leading video app developers to have ridden China’s video and live-streaming boom. Its flagship product Miaopai is a leading video clip editing and sharing app which claimed over 1.7 billion daily views as of September 2016.

Its growth is often attributed to its convenient integration into Weibo, the leading Twitter-like social media and strategic investor of Yixia Technology. But Weibo’s investment has been paid off even before the Yixia Technology’s listing as its shares have recently jumped to historical high due in parts to the boost from Yixia.

Besides that, two of Yixia Technology’s video platforms, video-dubbing app Xiaokaxiu and live streaming platform Yizhibo have also recorded significant growth during the past year. According to data from the company, Miaopai and Xiaokaxiu have a combined daily user base of 70 million with Yizhibo covering 10 million daily users.

Investors have been enthusiastic about the Beijing-based firm for some time, where it has pocketed nearly US$800 million funding in overall six rounds of financing from Weibo, Sequoia Capital, and RedPoint Ventures. The company’s most recent US$500 million round raised the company’s valuation to between US$3 billion to US$5 billion.

Prior to this, founder and CEO of Yixia Technology, Han Kun has answered inquiries from local media regarding its IPO plans, stating that: “Not a single startup that aspires for long-term and sustainable growth would forgo their IPO plan. However, going public is different for every company, taking every aspect of the company into consideration.”

By Vivian Foo, Unicorn Media

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