(Bloomberg) -- Vingroup JSC, Vietnam's biggest property company by market value, is planning a spinoff of its luxury residential arm that could raise as much as $1 billion, people with knowledge of the matter said.
The company's Vinhomes unit, which offers serviced apartments and villas to residents in the country's biggest cities, could sell shares as soon as the first half of this year, according to the people. Hanoi-based Vingroup is inviting banks to pitch for roles on the proposed offering, the people said, asking not to be identified because the information is private.
A $1 billion deal would be the biggest first-time share sale ever in Vietnam, according to data compiled by Bloomberg. It would surpass a stock offering last year from Vincom Retail JSC, a mall operator that's also backed by Vingroup, that raised about $708 million, the data show.
Vinhomes operates 10 projects comprising nearly 18,000 apartments, villas and shophouses, according to Vingroup's latest annual report. The properties include Vinhomes Royal City in Hanoi and Vinhomes Dong Khoi in Ho Chi Minh City.
Deliberations on a possible Vinhomes offering are at an early stage, and details could change, the people said. A representative for Vingroup declined to comment.
Shares of Vingroup have risen 83 percent over the past year, giving the company a market value of about $9.1 billion. The benchmark VN Index of Vietnam stocks rose 43 percent over the same period.
--With assistance from Nguyen Kieu Giang
To contact the reporters on this story: Vinicy Chan in Hong Kong at vchan91@bloomberg.net, Crystal Tse in Hong Kong at ctse44@bloomberg.net, Joyce Koh in Singapore at jkoh38@bloomberg.net.
To contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, Timothy Sifert
©2018 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
