VietNamNet Bridge - The Singapore Exchange has accepted the listing of Vietnamese real estate developer Vincom.

Vincom would become the first Vietnamese company to be listed in Singapore. Prior to Vincom, Vinamilk also prepared to list shares in Singapore, but the plan did not come into fruition.

"We expect to complete the initial public offering and listing procedures in the third quarter," Vincom chief executive officer Mai Huong Noi said.

The State Securities Commission has also approved the listing of 93 million shares – worth US$500 million, based on the June 10 closing price of VND113,000 per share.

About 5 per cent of the shares would be offered to strategic investors in Singapore, Noi stated. "We may release all of these shares if the expected price is achieved," she added.

Corporate valuation company Jones Lang LaSalle has assessed the current value of Vincom of more than $2.5 billion, with assets over the next five years projected to grow to $6 billion, based on current projects in development.

Listing on a foreign exchange would help Vietnamese enterprises raise foreign capital more effeciently, Noi said. In addition, since foreign shareholders had stricter requirements for transparency, governance, and accounting methods, Vietnamese firms could improve to meet these higher international standards.

Under listing regulations of the Singapore exchange, enterprises must also have equity of at least $122.4 million and have posted gross profits of at least $8.2 million for the two years prior to the listing.

Singapore Exchange Ltd CEO Hsieh Fu Hua expressed his view that Singapore Exchange would support Vietnamese enterprises in listing because it would benefit both national markets. Singapore Exchange and the Vietnamese State Securities Commission signed a financial co-operation agreement in 2007.

Source: VNS