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[VIETNAM] Intel-backed Company's IPO Raises $1 Billion

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  • madchinaman
    Intel-backed Vietnamese firm s IPO raises $1 billion Jonathan Hopfner EE Times http://www.eetimes.com/news/latest/showArticle.jhtml? articleID=196603956
    Message 1 of 1 , Dec 19, 2006
      Intel-backed Vietnamese firm's IPO raises $1 billion
      Jonathan Hopfner
      EE Times
      http://www.eetimes.com/news/latest/showArticle.jhtml?
      articleID=196603956


      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 process.

      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
      dong ($24.90).

      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
      business."

      "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
      businesses.
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