[VIETNAM] Intel-backed Company's IPO Raises $1 Billion
- Intel-backed Vietnamese firm's IPO raises $1 billion
SINGAPORE Vietnamese information technology firm FPT Corp. made a
dazzling debut on the Ho Chi Minh City stock exchange today (Dec.
13), enriching some of the United States' top venture capitalists in
The firm said in a statement that it had placed over 60 million
shares denominated at 10,000 dong (62 cents) up for grabs on the
market. By the end of the day those shares were trading at 400,000
The current share price values FPT at over $1.5 billion, making it
the top firm on Vietnam's nascent bourse.
CEO Truong Gia Binh said in the statement that the listing was
a "remarkable event" in the company's history but made it clear that
FPT was not prepared to stop there.
"Our next target is being listed on a regional stock [exchange] and
[becoming] a global corporation," he said.
Among the chief foreign investors in FPT are Intel Capital and the
Texas Pacific Group, which in October paid $36.5 million for a 10
percent stake in the firm.
Intel Capital president Arvind Sodhani said the initial public
offering [IPO] was a "positive step for the company to reach its
goals of growing internationally and expanding into new lines of
"We expect that the success of FPT will contribute to the growth of
the local IT industry and hope to make other such investments in
Vietnam and other emerging markets worldwide," he added.
In 2005, FPT, which has interests in everything from outsourcing and
systems integration to broadband Internet and mobile-phone services,
recorded a profit of $21.7 million on revenue of $517 million. The
vendor is anticipating annual growth of around 50 percent for the
next two years, driven mainly by its mobile-phone and software export