Vinhomes, the residential property development unit of Vietnamese conglomerate Vingroup, launched its IPO on the Ho Chi Minh City Stock Exchange (HOSE) on Thursday, becoming the 442nd to list on the bourse.

Vinhomes (HOSE: VHM), a luxury villas and serviced apartments developer with a charter capital of VND26 trillion (US$1.15 billion), made its debut on the HOSE with a massive issuance of nearly 2.68 billion shares, eclipsing Vingroup (HOSE: VIC) by almost 42 million units.

VMH was initially priced at VND92,100 ($4.05) per share, sending its capitalization to VND247 trillion ($10.87 billion) and raising HOSE’s total market capitalization by ten percent.

Just 20 minutes after trading began, Vinhomes shares surged 19.97 percent to the ceiling price of VND110,500 ($4.85) per share.

By Thursday afternoon, its market cap jumped to more than VND296 trillion ($12.9 billion), making the company the second largest entity on the country’s stock market, second to its parent company Vingroup’s current value of VND333 trillion ($14.67 billion).

Vinhomes total assets reached VND94,693 billion ($4.17 billion) as of March 2018.

According to Vingroup general director Nguyen Viet Quang, the position of general director and the legal representative of Vinhomes will be assigned to Nguyen Dieu Linh, currently the deputy chairwoman of the conglomerate.

“In the near future, our business will implement a ‘satellite city’ strategy to build cities that are about 20 to 30 kilometers from downtown Hanoi and Ho Chi Minh City, in parallel with other potential provinces,” Quang said.

Like us on Facebook or follow us on Twitter to get the latest news about Vietnam!