MWG share price dives ahead of listing

MWG share price dives ahead of listing

Shares of Mobile World Group (MWG), Vietnam’s biggest mobile phone retailer, will have a base price of VND68,000 ($3.2)/share when it hits the market on July 14, the Ho Chi Minh Stock Exchange has announced.

This is significantly lower than the planned price of VND85,000 ($4)/share. The announcement noted that 62.72 million shares will be listed with a trading band of +/- 20 per cent.

At VND68,000/share, MWG’s market capitalisation will be around VND4.2 trillion ($200 million).

In early May, a major shareholder in MWG, Mekong Enterprise Fund II, sold more than 5.6 million shares, or 9 per cent of the total volume MWG sold in its pre-listing offering, for VND85,000/share.

MWG still has six major shareholders who have at least 5 per cent each, namely Mekong Enterprise Fund II with 14.4 per cent, CDH Electric Bee with 18.8 per cent, Nguyen Duc Tai (the company’s managing director) with 17 per cent, and Tran Le Quan (a member of the management board) with 18.7 per cent.

Mobile World Group, also known by its Vietnamese name The Gioi Di Dong, was recently named by the World Economic Forum as one of the Global Growth Companies in East Asia. The firm, established in 2004, currently has 236 stores nationwide. It posted net profits of VND258 billion ($12.11 million) in 2013 and revenues of VND9.498 trillion ($400 million).

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