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Intel-backed Vietnamese IT firm's IPO raises $1B

Posted: 15 Dec 2006 ?? ?Print Version ?Bookmark and Share

Keywords:FPT? Intel? information technology company? information technology firm? Intel Capital?

Vietnamese IT firm FPT Corp. made a dazzling debut on the Ho Chi Minh City stock exchange on Dec. 13, enriching some of the United States' top venture capitalists in the process.

The firm said in a statement that it had placed over 60 million shares denominated at 62 cents up for grabs on the market. By the end of the day those shares were trading at $24.90. The current share price values FPT at over $1.5 billion, making it the top firm on Vietnam's nascent bourse.

CEO Truong Gia Binh said in the statement that the listing was a "remarkable event" in the company's history but made it clear that FPT was not prepared to stop there. "Our next target is being listed on a regional stock [exchange] and [becoming] a global corporation," he said.

Among the chief foreign investors in FPT are Intel Capital and the Texas Pacific Group, which in October paid $36.5 million for a 10 percent stake in the firm.

Intel Capital president Arvind Sodhani said the initial public offering [IPO] was a "positive step for the company to reach its goals of growing internationally and expanding into new lines of business."

"We expect that the success of FPT will contribute to the growth of the local IT industry and hope to make other such investments in Vietnam and other emerging markets worldwide," he added.

In 2005, FPT, which has interests in everything from outsourcing and systems integration to broadband Internet and mobile-phone services, recorded a profit of $21.7 million on revenue of $517 million. The vendor is anticipating annual growth of around 50 percent for the next two years, driven mainly by its mobile-phone and software export businesses.

- Jonathan Hopfner
EE Times

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