Vietnam is a focus market for Central Retail, a subsidiary of Thailand’s retail conglomerate Central Group, after its record IPO of US$8.1 billion, according to Nikkei Asian Review.

Illustrative photo.

The retail conglomerate has grown around its department store business. As of last September, Central Retail operated 1,922 stores in Thailand, 133 in Vietnam, and nine in Italy.

At present, 75% of its revenue comes from Thailand, 17% from Vietnam, and 7% to 8% from Italy. "In five years, Vietnam's contribution will rise to 25%," said Central Retail CEO Yol Phokasub in an interview with Nikkei.

Central Retail's IPO raised US$2.42 billion, the largest ever in Thailand’s stock market. The prospectus suggested the proceeds will be used to expand and renovate its domestic and international store networks.

Central Group Vietnam is a member of Central Group, which has been present in Vietnam since July 2011. The group's business activities in Vietnam range from electronics, sports, fashion, shopping centers and hotels to e-commerce and supermarkets.

The group made the headline in Vietnam following its acquisition of a chain of 33 supermarkets and hypermarkets owned by Big C for US$1.05 billion in April 2016. 

Shares of Central Retail ended at US$1.33 at its debut on the Stock Exchange of Thailand on February 20, equivalent to a market capitalization of US$8.1 billion, making it the 13th-largest company on the exchange.