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How Masan Attracted $5 Billion from Investors

Việt NamViệt Nam16/10/2024

“Over the past 17 years, Masan has successfully raised approximately $5 billion in capital. Masan is proud that investors such as KKR, TPG, and SK Group have invested in Masan multiple times and are looking forward to long-term cooperation,” said Michael Hung Nguyen, Deputy General Director of Masan Group.

Consumers shopping at WinMart supermarket

In a recent interview, Mr. Michael Hung Nguyen, Deputy General Director of Masan Group, shared about the journey of raising capital, attracting "big guys" to invest long-term in the group. Investors "choose the right place to invest", pouring 5 billion USD According to data from the Ministry of Finance , as of the end of June 2024, the total actual capital mobilization on the stock market (TTCK) is estimated at 181,345 billion VND, of which capital mobilization of enterprises through stock offerings is estimated at 18,966 billion VND; capital mobilization through corporate bond offerings is estimated at 5,877 billion VND. With the recovery of the domestic and global economies, many enterprises have mobilized tens of thousands of billions of VND through the stock market. With a "long history" of capital mobilization over the years with the amount reaching billions of dollars, the representative of Masan was asked by the program: what has made Masan successful in capital mobilization? "In the past 17 years, Masan has successfully mobilized capital of approximately 5 billion USD. Masan is proud that investors such as KKR, TPG, SK group have invested many times in Masan and aim for long-term cooperation" - Mr. Michael Hung Nguyen, Deputy General Director of Masan Group said. The Deputy General Director believes that to increase the opportunity to successfully mobilize capital, businesses need to have a clear strategy that investors can understand and trust. Mr. Michael Hung Nguyen gave an example of the deal that helped Masan enter the retail sector and reap success.

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Vietnam's leading retail chain has borne "sweet fruit" "At the end of 2019, Masan entered the retail market with the acquisition of VinCommerce (later renamed WinCommerce). At that time, WinCommerce's EBITDA was negative 7% and now this index is positive 4%, meaning a change of 11% within 4 years after WinCommerce was acquired by Masan Group. We also expect that in this third quarter, WinCommerce will achieve positive profits". WinCommerce (WCM) owns and operates the WinMart and WinMart+ chains, belonging to Masan Group. By the end of June 2024, WinCommerce had nearly 3,700 supermarkets, covering 62/63 provinces and cities, and is the leading modern retail chain in terms of the number of points of sale in Vietnam. After 10 years of operation, WinCommerce recorded annual revenue of over a billion USD, equivalent to about 26,000-31,000 billion VND. In the second quarter of 2024, WinCommerce achieved VND 7,844 billion in revenue, up 9.2% year-on-year. EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 11.1% to VND 172 billion. Notably, Masan Group announced that WinCommerce had positive after-tax profit in August 2024, having previously reported net profit in June and July, marking three consecutive months of profit. Thus, after 10 years of operation, Vietnam's leading retail chain has borne "sweet fruit", marking the beginning of a sustainable growth path in the future. Among the major investors "pouring" money into Masan, a familiar name has recently appeared, the billion-dollar Bill & Melinda Gates Foundation Trust. On September 13, Masan Consumer (a member company of Masan Group, stock code: MCH) announced the minutes of the vote to collect opinions on the additional dividend payment in 2023. In the list of shareholders participating in the vote, the Bill & Melinda Gates Foundation Trust is notable. This organization currently holds more than 1 million MCH shares, with a current market value of VND 212 billion. The fact that prestigious international investors have poured billions of dollars and committed to long-term investment reflects strong confidence in Masan's strategy and capabilities. The company also "cooled the hearts" of investors by continuously reporting positive profit figures throughout its core retail consumer business segment. Looking forward to the second half of 2024, along with the recovery of the consumer market and the absorption of economic stimulus solutions from the Government, Masan promises to exceed this year's profit plan.

According to Saigon Giai Phong Financial Investment

Source: https://www.masangroup.com/vi/news/masan-news/Masan-secures-5B-in-foreign-investment-focused-on-consumer-retail-building-blocks.html

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