Market Summary
In January 2024, the Vietnamese market witnessed transactions totaling around USD164m. Notably, Technology, Transportation & Logistics, and Consumer & Retail sectors were prominently involved.
Technology experienced the noteworthy fundraises with a total investment amount of USD60.1m, with (i) MITAC Technology Ltd securing USD30m, (ii) ITM Semiconductor obtaining USD20.1m, and (iii) Shunsin Technology Ltd generating USD10m through a private placement.
In the Transportation & Logistics sector, (i) Vinfast led the month's fundraising with the highest amount, securing USD100m through a convertible bonds contract with the investment fund YA II PN and (ii) BEgroup raised USD30.3m in its equity capital infusion, featuring participation from the new investor VP Bank.
Consumer & Retail also played a significant role, contributing c. USD9.76m through Wengu Viet Nam High Technology and Zhou Lei’ capital infusion.
Aggregate Deals Value = USD164m
This month's top deals
Technology
ShunSin Technology Ltd announced a USD10 million private placement on January 19, 2024, with participation from a new investor, ShunSin Technology Holdings Ltd.
The new subsidiary, ShunSin Technology (Vietnam), is seen as a long-term equity investment by the company. ShunSin Technology (Bac Giang, Vietnam) Limited announced a private placement for the gross proceeds of USD10 million on January 19, 2024. The shareholders have approved the transaction of the company. The company will issue common shares in the transaction.
ShunSin has also stepped up its deployment in the co-packaged optics (CPO) field, said the company at a recent investors conference call. The company will produce its CPO products mainly at its plants in Vietnam.
ShunSin has been looking into Sip technology for optical transceivers for years and has already generated samples of co-packaged optics (CPO), which might see widespread deployment by AI server supply chains by 2025.
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MiTAC Technology (Vietnam) Company Limited. announced that it expects to receive USD30 million in funding from Getac Holdings Corporation
Novaland shareholders have recently approved various stock issuance plans, including MiTAC Technology (Vietnam) Company Limited announced that it will receive USD30 million in a round of funding on January 1, 2024. The transaction includes the participation of a new investor, Getac Holdings Corporation for a 100% stake. The company has issued equity in the transaction. The transaction has been approved by the shareholder board.
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Transportation & Logistics
The YA II PN investment fund managed by Yorkville has signed a contract to spend USD49 million to purchase VinFast shares and USD51 million to buy back VFS shares from Asian Star shareholders
On December 29, 2023, VinFast entered into a securities purchase agreement with the YA II PN investment fund, managed by Yorkville and based in Mountainside, New Jersey.
According to the agreement, VinFast has agreed to issue and sell to Yorkville a convertible bond with a principal amount of USD50 million. The convertible bond will mature on July 1, 2024, unless converted by Yorkville or repurchased by VinFast. If converted, the conversion price will be USD10 per VFS share. Additionally, on December 29, 2023, Asian Star will sell its stake in VinFast to the YA II PN investment fund for USD49 million, and these shares are provided to the company under the terms of the previously signed funding agreement.
Following this funding round, VinFast plans to expand its distribution network for electric vehicles to 125 sales points across the United States. Additionally, VinFast currently operates 13 retail stores and service centers in the state of California.
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Be Group has raised USD30 million from VPBank Securities to strengthen its competition with Singaporean rival, Grab
In 2019, VPBank, the parent company of VPBank Securities, became a strategic partner of Be Group to provide financial services within Be's ecosystem, including payment functions, loyalty point accumulation, and other financial services.
Be Group announced that it will utilize the newly invested amount of USD30 million (c. VND740 billion) from VP Securities to expand and upgrade its existing ride-hailing, delivery, and digital financial services. Additionally, Be Group plans to explore new markets and segments within the consumer and transportation sectors.
Before receiving funding from VPBank Securities, Be Group had secured investments from GSM, a subsidiary of Vingroup, in early 2023, although the specific amount was not disclosed.
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Consumer & Retail
J.Pond Precision Technology Co., Ltd. agreed to acquire a 55% stake in Wengu Viet Nam High Technology and Zhou Lei for USD9.76m
J.Pond Precision Technology Co., Ltd. (SZSE:301326) agreed to acquire 55% stake in Wengu Viet Nam High Technology Company Limited and Wengu Industrial (Shanghai) Co., Ltd. from Wengu Sealing System (HK) Limited, and Zhou Lei for CNY 70 million on January 16, 2024. The consideration consists of CNY 70 million in cash. The agreement outlines a three-stage payment plan.
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Agriculture & Food
Mr. Trinh Trung Hieu, Chairman of the Board of Directors of Huu Nghi Food Joint Stock Company (Huu Nghi Food, stock code: HNF), has recently registered to purchase over 2.63 million HNF shares, equivalent to c. USD2.46 million, for investment purposes
The anticipated transaction is scheduled to take place from January 16 to February 6, using both negotiated and matching order methods. Currently, Mr. Trung Hieu holds 3.09 million HNF shares, accounting for 10.3% of the company's capital. HNF shares are priced at USD0.9 per share, representing an almost 70% increase from the lowest point in the past year. At this valuation, Mr. Trung Hieu is expected to spend approximately c. USD2.46 million to increase his ownership stake in Huu Nghi Food.
In the last months of 2023, the company consistently announced dividend payouts for the year 2022, with a total interim dividend rate of 50% in cash. Huu Nghi Food's impressive dividend distribution stems from its outstanding business performance, with record-breaking revenue and profit. The company achieved a profit of c. USD4.8 million, a 3.2-fold increase compared to the previous year.
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Note: Deal values include disclosed announced & closed deals with amounts restricted to the local scene i.e., amounts related to the Vietnam entity and/or business. Rumored deals are not included. Cross-posted deals are also adjusted to avoid double counting.
*USD 1.00 = VND24,540 as of 02/20/2024