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FPT to cut stake in retail unit to less than half

Vietnam’s IT Group will sell a further stake in its retail arm, ending up with less than half before the end of next month.

Its spin off from FPT Technology Production Distribution and Retail will be achieved in two stages. As the first step, a 30 per cent stake will be opened for institutional investors. Following that, the remaining 10 per cent of its share will be sold to other investors via an IPO, reports HCM City Securities Corporation (HSC).

The IPO price has not been confirmed yet, but it is said to be lower than that of Mobile World which closed a week ago at VND99,500 (US$4.37) a share.

HSC also says FPT Retail may trade on the Ho Chi Minh Stock Exchange next year.

According to the Nikkei Asian Review, the divestment could be worth $103 to $121 million for FPT. The money could be used to improve its technological infrastructure and expand its telecommunication services.

FPT Group chairman Truong Gia Binh says the aim is to switch its core business from retail to technology and telecommunication.

The group had a post-tax profit of VND1.21 trillion for its first half, a 12 per cent increase year on year.

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