Vietnam property developer Vincom has raised $37 million from a maiden auction of 5 million shares, or 8.33 percent of the company, the Ho Chi Minh Stock Exchange said Wednesday.
The average winning price at the auction on Tuesday was 119,479 dong ($7.4), or 49 percent higher than Vincom's starting offer of 80,000 dong, the exchange said in a statement.
Foreign investors bought nearly 30,000 of the shares offered, the statement said.
Hanoi-based Vincom, which owns a large office and shopping complex in the capital and a five-star resort in the central city of Nha Trang, is now valued at about $444 million.
Vincom Chairman Le Khac Hiep has said the firm would float its shares on the Ho Chi Minh market next month.
Hiep said in June the firm had won permission from the Ho Chi Minh City government to build a $250 million office complex in the city's District 1 commercial center.
Despite fast economic growth of around 8 percent, Vietnam still suffers from a shortage of quality office buildings and commercial centers.
Vacancy rates at top office buildings in Hanoi and Ho Chi Minh City are at record lows and monthly rents have surged about 20 percent in the last two years to average $30-$35 per square meter, double the rates in Bangkok.
Vincom has forecast its net profit would rise 9 percent next year from 2007 to $8.6 million on revenues of $15.2 million due to strong property demand.
Source: Thanh Nien
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