Mobile World expects June listing at $253 mln value


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Mobile World expects June listing at $253 mln value
Mobile World, Vietnam's top mobile phone retailer, will list its shares on the Ho Chi Minh Stock Exchange in June, its chairman said on Wednesday, estimating its value at US$253 million at least.

It plans to list all 62.7 million shares, after a private placement of 7.5 million shares on Wednesday priced at VND85,000 ($4) each, the basis for his valuation estimate.

"This is reasonable for a company that's growing well at present and will develop more in the future," Chairman Nguyen Duc Tai told Reuters by telephone.

The chain, known locally as The Gioi Di Dong, has a 24 percent share of Vietnam's retail mobile phone market.

It reported net revenue of $452 million in 2013 and expects to reach $600 million this year, with 10 percent from its online sales, Tai said.

Mobile World, 14 percent owned by local fund Mekong Capital, plans to use the proceeds from the offering to expand its network of 213 stores in 63 provinces in Vietnam.

According to the Ministry of Information and Communications, Vietnam had 131 million registered mobile phone users at the end of last year, exceeding its 90 million population.

Mobile World is benefiting from increased consumption and higher bargaining power with its suppliers but faces stiff competition from listed firms FPT and Tran Anh, said Kien Nguyen, an analyst at SSI Securities.

The company is set to join the VN-Index in Ho Chi Minh City, the biggest of Vietnam's two equities markets, some time in June, Tai said.

Mobile World had wanted to go public in 2012 but held back because of the stock market's below-par performance at the time, he said.

The VN-Index has grown 15.7 percent this year, making it Southeast Asia's best performer and the No. 4 in Asia, according to Thomson Reuters data.

The index is still down 50 percent from its peak in March 2007 and has a market capitalization of $49 billion, an eighth the size of the main indexes of Thailand and Indonesia.

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