Tuesday, 22 Jan 2019

Real estate developer Novaland to list in foreign securities market

Updated at Sunday, 04 Mar 2018, 09:06
The Hanoitimes - Shareholders of Vietnam’s second largest listed property developer Novaland (NVL) approved the firm’s board of directors’ proposals to list in a foreign stock exchange in 2018 or 2019.
It can be the Singapore Exchange or another exchange to be selected by the firm’s board of directors, according to the firm’s statement released recently on the Ho Chi Minh Stock Exchange.
Earlier, Novaland Group announced that it was seeking shareholders' approval through written documents on the overseas listing, the new issuance plan and the supplement of the company’s charter from February 12-27.
View of Novaland real estate project in Ho Chi Minh City
View of Novaland real estate project in Ho Chi Minh City
According to the new statement, the firm’s shareholders also agreed with the remaining proposals Accordingly, the group will issue 100 million preference shares, instead of 23 million as approved at the Annual General Meeting of Shareholders in 2017, to increase charter capital to VND7.29 trillion (US$321.15 million). The company expected to fetch VND5 trillion from the sale.
Besides, the company also asked for the issuance of convertible bonds worth US$250 million against the previous plan of only US$100 million.
Recently, Novaland also registered to list additional 20 million shares to increase charter capital to VND6.497 trillion; including 642.83 million ordinary shares and 6.83 million preference shares. The Securities Depository Center will receive the additional registered securities starting from January 24 this year.
On the Ho Chi Minh Stock Exchange, NVL shares are trading at around VND83,600 apiece, up sharply 36 percent in just one month.
Novaland is currently Vietnam’s second largest listed property developer with a market capitalization of some US$1.7 trillion. Novaland achieved net revenue of VND5.737 trillion and net profit of VND1.343 trillion in the first nine months last year. Its total assets reached nearly VND47.880 trillion, an increase of VND11.353 trillion compared to the beginning of the year.
Last August, South Korea’s Shinhan Investment Corp teamed up with Vietnam’s leading asset management firm VinaCapital to establish a US$100 million private equity fund to invest in Novaland. At that time, Shinhan Investment was also considering funneling 20-30 billion won in the fund itself.
VinaCapital, through its Vietnam Opportunity Fund, in 2015 had invested $15 million in Novaland’s US$47 million convertible share program. The fund manager also participated in its last year private placement when it raised US$120 million. 
Other investors included Singapore’s GIC, JP Morgan, Duxton Asset Management, as well as Vietnam-based investors such as Dragon Capital, VietCapital Asset Management and VietFund Management. 
Novaland last year was ranked in the list of “The 40 Most Valuable Brands in Vietnam” by Forbes.
Apart from making it to Forbes’ Top 40, Novaland has also been named in many reputable rankings in the market, such as “The 50 Best-Performing Listed Companies in Vietnam in 2016” and “The Top 50 Listed Companies in 2017” by Forbes.
Thao Le
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