Thai food major CP to list on Vietnam stock exchange

Thai food giant Charoen Pokphand Foods (CPF) has allowed its subsidiary CP Vietnam, an integrated agro-industrial and food business, to list its shares on the Ho Chi Minh Stock Exchange.

CP Vietnam (CPV) aims to become a public company by distributing shares to minorities, according to a CPF report filed with the Stock Exchange of Thailand.

CPF directly holds 29.18% of CPV shares. The remainder is held indirectly via its subsidiary CP Pokphand (CPP), which recently planned to delist in Hong Kong.

The Thai corporation in 1993 established its first animal feed factory in Vietnam at Bien Hoa Industrial Zone 2, the southern province of Dong Nai, focusing on feed, farms, and food. CP Vietnam has become a domninant player in the country’s livestock market.

CPV in 2020 achieved nearly $3.48 billion in revenue and $967 million in profit before tax, according to a CPP financial statement.

The company reported total assets of VND45 trillion ($1.93 billion) and equity of VND35.4 trillion ($1.52 billion) by the end of 2020.

CPV has surpassed its rivals in Vietnam like Dabaco and Masan MEATLife, which reported revenue of VND10.8 trillion ($470 million) and VND18.89 trillion ($822 million) in 2021, respectively. The two corporations have been listed on the Vietnamese stock exchanges, with market caps of VND7.21 trillion ($314 million) and VND24.59 trillion ($1.07 billion), respectively.

The Vietnamese bourses currently have eight listed FDI companies, accounting for 0.3% of their market capitalization.

Japanese retail giant Aeon Mall, which has so far invested $1.18 billion in Vietnam, also plans to list shares on the Vietnamese stock market.