Capital markets around the world continue to attract international companies and M&A activity remains strong despite widespread uncertainty. This is no less true for companies in Vietnam.
London remains the market of choice of many international companies considering an IPO as a stage in the exit process. They are attracted by the liquidity and investor depth offered and a practical, well balanced principles-based regulatory framework. Activity in London capital markets remain strong in 2017 to date, with over 60 IPOs on and secondary listings. During this period, nearly £2 billion has been raised.
Currently, approximately 40% of the total London market by number is represented by overseas businesses, including those from the Asia Pacific.
The London team of international accounting group Crowe Global, the Singapore office of international lawyers Reed Smith, and the Jersey head office of the international fiduciary and trust group Minerva Trust and Corporate Services hosted capital markets and M&A seminars in June at the Melia Hanoi Hotel, Hanoi and at the Park Hyatt Saigon Hotel, Ho Chi Minh City, in association with the UK Department of International Trade. These forums discussed discuss the financing, growth and exit options and opportunities that exist for emerging companies in Vietnam.
These seminars provided an update on capital markets activity and options. They also covered raising capital, growing a business, and finding the most appropriate exit route for shareholders, by way of a trade sale or an IPO or a secondary listing on a UK or Asia Pacific market.
Local companies and advisers were given practical case studies of successful transactions undertaken by emerging SE Asia based companies. Robin Stevens, Head of Capital Markets at Crowe UK, one of the speakers, said: "Our team was in Vietnam to provide objective advice to local companies on which financing, growth and future exit options best suited their needs. The ideal candidate for sale or an IPO is a company that has established a strong position in its home market, has begun to expand into the region, and perhaps has plans to develop its business further afield."
He added, "Detailed planning is to key to IPO or exit- route success. Although a sale or an IPO can be completed in 4 -6 months, the 'investor-ready' period is crucial to preparing a company for a successful transaction.
"If an IPO is the chosen option, it is important that, once listed, regular engagement with the market takes place to maintain investor interest and liquidity – invest time in the market and the market will invest time in you."