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Property

Novaland to list on HoSE in Q4

Released at: 11:50, 20/10/2016

Novaland to list on HoSE in Q4

Photo: Duc Anh

Real estate corporation completing valuation and paperwork for listing before end of year.

by Duy Anh

The Novaland Group will be listed on the Ho Chi Minh City Stock Exchange (HoSE) during the fourth quarter of this year and prior to that will issue additional primary stocks via private placement for selected potential financial investors.

“Novaland has no plan to conduct an initial public offering (IPO) for now but will issue primary stocks and list,” Ms. Nguyen Thuy Vinh, a PR Executive at the real estate corporation, confirmed with VET.

Revenue from the share issuance will be used to fund existing and new Novaland projects, increase working capital and repay some existing loans, she added.

The rate of transferable stakes is estimated at 20 to 25 per cent after listing, coming from the share issuance, conversion of previous financial instruments Novaland has mobilized, and the current transferable holding structure (excluding the holdings of the Chairman and related parties).

Director of Capital Markets and Investor Relations at Novaland, Mr. Phan Le Hoa, told local media that 100 per cent of Novaland’s existing shares will be listed and in November it will forward documents to HoSE and expects to receive approval within six to eight weeks.

In 2015 it mobilized some $50 million from three strategic investors: Dragon Capital, VinaCapital, and a domestic financial investor that participated in the convertible preferred stock issue. The company planned to mobilize $200 million in total.

Since July last year Novaland has been working with many domestic and international investors, particularly those from the US, Singapore, Japan, Hong Kong, and Thailand. It has also approached a number of large banks worldwide and received grants to develop projects through the sale of convertible preferred stock.

Novaland has also mobilized $60 million from two investors from Switzerland and Hong Kong. With this plus the upcoming private placement offering, the target of $200 million is within reach. “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,” Mr. Hoa said.

Its charter capital currently stands at VND5.22 trillion ($234 million) and it expects this to increase to VND6 trillion ($269 million) after the share issue. “Novaland’s founders hold 51 per cent and this will remain the same after listing,” Mr. Hoa said.

Novaland has also considered an employee stock ownership plan (ESOP) for employees but this will be decided upon later by the Board of Management, after the company is listed.

The real estate group is using local and foreign valuation companies, including Saigon Securities Incorporation (SSI), VietCapital Securities, and Daiwa Securities. “Novaland is currently valued from $800 million to $1.4 billion,” according to Mr. Hoa.

Regarding strategic shareholders, Novaland has been paid special attention by foreign partners with strong financial capacity and the listing will have no limit on investors from different countries.

The Ho Chi Minh City-based real estate group expects to mobilize capital from major financial corporations based on its prestige and positive business results. “We know that a real estate enterprise always need a lot of capital for stable development and we will therefore meet potential partners,” Mr. Hoa added.

Novaland is one the leading real estate enterprises in the south of Vietnam, with a range of apartment projects in the mid and upper segments, including Sunrise City, RiverGate, Tropic Garden, Lexington Residence, Galaxy 9, and Icon 56.

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