Mobile World Co., Vietnam’s biggest phone retailer, plans to list shares in June amid a rally that’s made the country’s $52 billion stock market Asia’s best performer this year.
The company may start trading about 63 million shares on the Ho Chi Minh City Stock Exchange, Tran Huy Thanh Tung, the head of Mobile World’s supervisory board, said in an e-mail interview. The initial price hasn’t been decided yet, he said.
Mobile World aims to boost pretax earnings 47 percent to 513 billion dong ($24.3 million) this year by taking a larger share of mobile-device sales, Tung said. Vietnam’s VN Index (VNINDEX) climbed 22 percent last year, its biggest annual gain in four years, as overseas investors put a net $263 million into the nation’s stocks amid growing appetite for the least-developed markets.
“There will be demand,” said Giang Trung Kien, head of research at FPT Securities JSC. The listing will boost investors’ choice of consumer shares, helping them diversify from Vietnam Dairy Products JSC and Kinh Do Corp., he said.
Shares of Vinamilk, as the nation’s biggest dairy company is known, have increased 37 percent in the past year while Kinh Do, the largest confectionery maker, has risen 35 percent. That compares with the VN Index’s 14 percent gain in the period.
Vietnam’s economy grew 5.42 percent last year, faster than the 5.25 percent pace in 2012. The government predicts economic growth will quicken to 5.8 percent in 2014. The VN Index will climb 7 percent from its closing yesterday to 603 by year-end, according to the average of 10 analyst estimates in a Bloomberg survey in January.
The index has gained 13 percent so far this year, the most among Asian markets tracked by Bloomberg. The gauge rose 1.1 percent to the highest close since October 2009 today.
Mobile World aims to boost revenue to 12.6 trillion dong ($597 million) this year from 9.2 trillion dong in 2013, Tung said.
The company is seeking to increase its share in the sale of mobile devices to 30 percent by 2016 from 20 percent, Chris Freund, managing partner at Mekong Capital, which owns about 25 percent of the company, said in a Feb. 11 interview. It runs 213 stores, up from seven in 2007 when Mekong first invested, Freund said. The number will rise to 253 this year, Tung said.
There were 98 million mobile phone subscribers in Vietnam as of December, the nation’s Ministry of Information and Communication said Dec. 26. The nation has a population of about 93 million, according to data compiled by Bloomberg.
Viet Capital Securities JSC, the nation’s third-largest brokerage, will advise the company on the listing, Tung said.