VNGR – IPO Note – 20180207

• VNRG, the largest rubber plantation operator in Vietnam, held its IPO auction on February 2nd, 2018. The company’s solid core operations will support earnings growth in the future. The IPO valuation was not cheap enough to draw the attention of a local strategic investor or the public, and there will not be any foreign investors in the post-IPO divestment. However, we are looking for a more detailed development plan on around 10k ha of “repurposed” land in highly valuable locations, which could improve VNRG’s current poor asset turnover relative to its peer group; this could be a positive price catalyst when announced.

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