Logos of restaurant chains operated by Huy Vietnam Group
Huy Vietnam Group, which runs restaurant chains in Ho Chi Minh City, is planning an initial public offering on the Hong Kong stock market next year, and expects to raise US$100 million.
The company will file an application with the Hong Kong Exchanges and Clearing for the listing this month, news website FinanceAsia reported Tuesday.
If the application goes through, it would be the first Vietnamese company to be listed overseas, it said.
The company has yet to determine the size of the issue, slated for spring, but bankers familiar with the deal were quoted as saying it could raise up to $100 million.
The funding will help the company expand its affordable restaurant chains like Mon Hue and Pho Ong Hung around the country.
Huy Vietnam, established in 2007, has so far received three rounds of funding worth $65 million from foreign private equities, including US-owned Franklin Templeton and Fortress Capital, according to the website.
In the past many major Vietnamese companies like dairy giant Vinamilk and information technology conglomerate FPT planned listings in Singapore, but all ended up dropping the plans.
Some analysts blamed the failure on Vietnam's restrictions on such activity, saying businesses' targeted bourses do not always have tie-ups with Vietnamese stock exchanges -- a requirement under the country’s laws.
But others believed it was because the companies failed to meet foreign countries' legal requirements for listing, including provisions related to capital, profits, and management.