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Novaland to list 600 million shares

Released at: 15:00, 01/12/2016

Novaland to list 600 million shares

Photo: Duc Anh

The listing will be conducted at the end of December and is expected to be financed by private placement.

by Quynh Nguyen

Novaland plans to list 600 million shares (100 per cent of its shares) on the Ho Chi Minh City Stock Exchange (HOSE) this month.

The starting price will be VND50,000 ($2.2) per a share and is expected to be financed by private placement. 

“The listing is expected to be conducted at the end of December,” according to Ms. Hien Cao, Novaland’s PR Executive. “Plans for an initial public offering (IPO), however, will not be conducted this year.”

The Ho Chi Minh City-based property developer has also successfully sold 10 per cent of its shares to 18 investors, mainly overseas financial institutions from Hong Kong, Singapore and Thailand. The deal was worth $120 million. 

“We received more than twice as many bids as our offering volume. About 70 per cent of our investors are overseas financial institutions from Hong Kong, Singapore and Thailand,” Novaland’s CEO Phan Thanh Huy was quoted as saying.

The developer previously announced it had raised $60 million in convertible bonds from Swiss and Hong Kong investors earlier this year after raising $50 million in 2015.

“With this plus the upcoming private placement offering, the target of $200 million is within reach,” said Mr. Phan Le Hoa, Director of Capital Markets and Investor Relations at Novaland. “We believe that with this new capital source, Novaland will have sufficient financial capability to grow in the next stage and we target to be in the VN30 group of shares.”

The stake sale will be the biggest investment in a Vietnamese property developer since Warburg Pincus invested $200 million in Vingroup’s subsidiary Vincom Retail in 2013, which later in 2015 received a $100 million follow-on funding from the global private equity firm.

Warburg Pincus has recently announced a joint venture with Vietnam’s leading fund manager VinaCapital, which invested $15 million in Novaland, to make investments into Vietnam’s hospitality properties.

The joint venture will be seeded initially with approximately $300 million in capital commitments from the two parties and best-in-class hospitality assets including a 100 per cent stake in Serenity Holding as well as select resort and city hotels in Vietnam.

Novaland is one the leading real estate enterprises in the south of Vietnam having a range of apartment projects in the mid and upper segments such as Sunrise City, RiverGate, Tropic Garden, Lexington Residence, Galaxy 9, and Icon 56. Last year, the real estate developer stood at VND6.7 trillion ($294.8 million) and had a net profit of VND446 billion ($19.6 million).

In September this year, the domestic property developer announced plans to replace South Korea’s Daewon Cantavil to resume the construction of the long-delayed Da Phuoc International New Town project in the central city of Da Nang.

Mr. Huy told local media that the company will cooperate with Bac Nam 79 Construction JSC to develop the project. The project will be renamed The Sunrise Bay.

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