PE-backed Mobile World sets terms for Vietnam IPO

The company said 62.7 million shares will be listed at a starting price of VND68,000, with trading on the Ho Chi Minh exchange due to begin on July 14. Mekong and CDH have already made a partial exit via a pre-IPO private placement and have no immediate plans to sell more shares.

Mekong invested $3.5 million in Mobile World in 2007, taking a 32.5% stake. At the time, the company had just seven stores. Through a combination of strong management and rapid growth in mobile subscribers in Vietnam, it is expected to reach 253 stores by the end of this year.

Mobile World wants to increase its market share from 20% to 30% by 2016 as well as more than double the size of its online business. In addition, three years ago the company expanded into the consumer electronics space and has built up a network of 13 stores. Twelve more will be opened this year.

Overall revenue of at least $600 million is likely in 2014 with profit reaching $21 million.

Mekong's first partial exit came in early 2013 when CDH - a China-focused GP that makes selected investments outside its home market - acquired a 19.88% interest for around $20 million. Most of the shares came from the company founders.

The pre-IPO placement in April was driven by a need to meet free float requirements. It was oversubscribed, with a 12% stake in the company - 9% from Mekong and 3% from CDH - sold for $22.8 million. Both PE firms gained on their initial investments. Including dividends, Mekong's return represented a 21.8x increase on the adjusted price per share at which it invested.

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• Topics
• Consumer
• Exits
• Southeast Asia
• Vietnam
• CDH Investments Management
• Mekong Capital
• IPO
• Southeast Asia
• Exit