U.S. private equity firm Bain Capital has made its first investment in Vietnam, with at least $200 million in the Masan Group conglomerate, and could bring in other investors to raise that to $500 million, the firms said on Monday.

The deal is set to boost competition in Vietnam’s retail market, as rapid urbanization draws domestic and foreign investors looking to expand or gain a foothold in the country of 100 million.

Proceeds will go to strengthen Masan’s financial position, said the fast-moving consumer goods firm, which runs more than 3,200 supermarkets and minimarts in the southeast Asian nation.

“Masan has the right fundamentals, reach, and growth strategy to succeed in a high-growth and compelling consumer market,” Bain partner Barnaby Lyons said in the joint statement.

The investment would be in the form of convertible dividend preference shares priced at 85,000 dong ($3.50) each, which can be converted into ordinary shares in a one-for-one ratio, Masan added.

“We look forward to working with Bain to accelerate our vision to be the one-stop shop for consumer daily needs,” its chief executive, Danny Le, said in the statement.

Last week Reuters reported that Singapore’s sovereign wealth fund, GIC, was among investors vying to buy a stake of up to 20% in rival grocer Bach Hoa Xanh, in a deal that could value the grocery chain at up to $1.7 billion.

Prior to Masan, Bain Capital has invested in a diversified set of consumer and retail businesses in Asia, including Schwan’s Company and Carver Korea.

Jefferies Singapore Limited acted as financial adviser on the Masan Group deal, expected to close by year-end, the firms added, subject to the usual corporate and regulatory approvals.

This year Masan said it would delay to 2024 or 2025 an initial public offering (IPO) of its retail arm, The CrownX, which is Vietnam’s biggest retail company, because of unfavorable market conditions.

By 0447 GMT, Masan’s shares were trading up 1.7% at VND77,600 each.

VnExpress