30% of charter capital of FPT retail transferred to investment funds

Vietnam's biggest information technology company FPT yesterday announced that it has transferred 30 percent of FPT Digital Retail's charter capital, or equivalent to six million share, to Dragon Capital and VinaCapital, the two biggest investment funds in Vietnam.
30% of charter capital of FPT retail transferred to investment funds
FPT Retail is the second largest retailer of mobile handsets in the country with a national network of 438 stores by July. Meantime, Dragon Capital and VinaCapital manage assets of $2.1 billion and $1.8 billion respectively.
According to Euromonitor and Retail Asia Publishing, FPT Retail topped the list of effective retailers in Vietnam, with revenue of $15,717 per sq. meter of sales space. .
This year, FPT Retail is targeting to achieve revenue growth of 27.5 percent and pretax profit of 40 percent by opening more outlets in areas with low smart phone penetration. In first six months of the year, FPT Retail’s turnover reached VND6,193 billion ($272,505,471), a year-on-year rise of 31 percent and pretax profit is VND141 billion, up 44 percent compared to same period last year.
FPT Retail’s annual revenue growth and pretax profit are expected to achieve 25 percent and 35 percent respectively in the period 2016-2019.
VinaCapital director Andy Ho said that the Vietnamese people show a huge demand of smart phones because smart phones are considered as the second device to communicate and access internet. Accordingly, the fund managers decided to invest in the unlisted retail company.
Dragon Capital’s CEO Vu Huu Dien said that with the population of 100 million people and Vietnam’s $110 billion retail market is one of the most lucrative in the world, and the growth of mobile phones and technology gadgets sales has been tremendous.

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