Vietnamese hospitality firm Vinpearl seeks to mobilize $197 mln before stock relisting

Vinpearl JSC, the hospitality arm of Vietnam's leading private conglomerate Vingroup, will offer more than 70 million shares to the public at VND71,350 apiece, for proceeds of over VND5,000 billion (nearly $197 million).

Shareholders can buy 40 shares for each 1,000 shares they own. The offering is scheduled for Q4/2024 or Q1/2025.

Of the proceeds, VND990 billion (nearly $39 million) will be contributed to Vinwonders Nha Trang - an entertainment-tourism complex in the beach town of Nha Trang, central Vietnam.

Vinpearl will spend VND2,350 billion ($92.5 million) on acquiring shares and components of some projects from Vingroup, and use VND1,658 billion to pay interests and principals on loans and supplement working capital.

This is a notable move by Vinpearl in the context the company is about to list on the stock market. Last month, the Securities Commission confirmed Vinpearl had completed its public company registration.

At Vingroup's 2024 AGM, chairman Pham Nhat Vuong said he expected to successfully list Vinpeal shares by the end of 2024.

Established in 2006, Vinpearl is one of the largest tourism and leisure service providers in the country. Vingroup (HoSE:VIC) currently holds a 85.55% stake at Vinpearl.

It currently owns 10 hotels and resorts across Phu Quoc island off the southern province of Kien Giang, Nha Trang town in the central province of Khanh Hoa, the ancient town of Hoi An in the central province of Quang Nam, and the northern province of Quang Ninh.

Vinpearl used to be listed on the Ho Chi Minh City Stock Exchange (HoSE) as VPL at the end of January 2008. However, 205.5 million VPL shares were delisted in December 2011 when Vinpearl was merged into Vincom - the predecessor of Vingroup, and VPL shares were exchanged into VIC shares.

Vinpearl announced that it posted nearly VND2.58 trillion ($101.55 million) in net profit in the first half of 2024, up 2.8-fold from the same period last year.

In 2024, the company targets a net revenue of VND14,867 billion ($585.2 million) and a net profit of VND1,909 billion ($75.14 million). This means it had exceeded the year’s net profit plan after the first three months of the year.

Vinpearl’s total assets as of June 30 had been VND67,617 billion ($2.66 billion), of which fixed assets accounted for the largest proportion at VND37,862 billion.

The company's equity reached over VND31,500 billion ($1.24 billion). The debt-to-equity ratio is 1.15 times, corresponding to approximately VND36,200 billion in liabilities. Of which, outstanding bonds are worth more than VND11,000 billion ($432.99 million).