Vinpearl Shares Skyrocket After Strategic Equity Issue Launch

Vinpearl, a key player in Vietnam's hospitality sector, saw its stock surge by 20% following a new equity issue. This move is aimed at boosting capital for its parent, Vingroup, to support its automotive venture, VinFast. The listing highlights potential for foreign investment in Vietnam's market.

Shares of Vinpearl, the hospitality division under Vingroup, witnessed a remarkable 20% surge on Tuesday following the firm's announcement of an equity issue. This strategic financial maneuver aims to enhance Vinpearl's capital reserves, primarily to fuel investment in VinFast, Vingroup's automotive arm.

After opening at 71,300 dong, the stock leapt to 85,500 dong, conferring Vinpearl with a market valuation of 153.3 trillion dong (approximately $5.91 billion). Nguyen The Minh, head of research at Yuanta Securities Vietnam, noted that this listing presents Vingroup with an alternate avenue to raise funds and diversify its assets while leveraging Vinpearl's reliable cash flow.

VinFast has garnered $17 billion in capital injections since its 2017 inception, though the company reported a $3.2 billion loss in 2024, escalating from $2.4 billion in the previous year. Minh suggests the equity issue could revitalize investor interest, especially as Vingroup retains the bulk 85.5% share, limiting initial public trading to 14.5%.

(With inputs from agencies.)