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Vietnam’s Hung Thinh Land Seeks At Least $200 Million From IPO

  • Ho Chi Minh City-based builder eyes 10% stake sale early 2023
  • The company sees a market value of $2.1 billion after the 2023 listing

Hung Thinh Land JSC plans to offer a 10% stake worth at least $200 million in an initial public offering that would give the Vietnamese developer an estimated market value of 50 trillion dongs ($2.1 billion), the company said.

The builder of high-rise condominiums and vacation villas looks to issue 100 million shares to foreign and domestic investors early next year, the company said in an email responding to questions from Bloomberg News.

The developer will consider offering a larger stake “if demand from foreign investors is stronger than what we anticipate,” the company said.

Hung Thinh Land, which targets middle-class buyers in major cities and provinces across Vietnam, plans to set the initial price at no less than 45,000 dongs each for the IPO, it said. The company eyes a Ho Chi Minh City Stock Exchange listing in the first half of next year.

The company would become the third largest real estate developer on the Ho Chi Minh City Stock Exchange, following Vinhomes JSC and No Va Land Investment Group, VinaCapital Group said in a May note to investors about its Vietnam Opportunity Fund’s $25 million investment into Hung Thinh Land.

The developer’s planned IPO comes as the benchmark VN Index has fallen more than 20% this year.

The 20-year-old builder targets selling more than 10,000 homes next year, from 5,100 in 2021 and an estimated 6,000 this year, it said.

Hung Thinh Land sees after-tax profit in 2022 surging to over 3.4 trillion dongs from nearly 1.7 trillion dongs last year. Net income is forecast to almost triple to more than 5 trillion dongs on total revenue of 23.2 trillion dongs in 2023, the company said.  Bloomberg

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