Novaland files for HCM City listing
Novaland files for HCM City listing
Nova Land Investment Group Corporation (Novaland) has filed for domestic listing on the HCM Stock Exchange (HoSE), the southern stock exchange said in a statement on Wednesday.
According to HoSE, Novaland filed for listing of nearly 589.4 million shares, worth VND5.89 trillion (nearly US$262 million).
Phan Le Hoa, Novaland’s director of Capital Markets and Investor Relations, told reporters in October that Novaland was valued between $1.2-1.4 billion and the company would complete its listing in December 2016.
Of the total capital, the percentage of free-floating shares would be between 20-25 per cent and 70-80 per cent of the stake would be sold to foreign investors, Hoa said.
On Tuesday, news hub Deal Street Asia cited a report on Bloomberg which said Novaland had sold 10 per cent of the realty company’s stake worth $120 million to 18 foreign investors.
Novaland was not available for comment on the deal.
The deal is believed to be part of Novaland’s plan to raise $200 million to increase its chartered capital to VND6 trillion from VND5.22 trillion to make further investments in the real-estate sector and to conduct the company’s M&A activities.
The fund-raising may include the income from selling free-floating shares via a private placement and from converting bonds and preferential shares that the firm issued earlier.
In 2015, Novaland sold preferential shares worth $50 million to three strategic investors, including Dragon Capital and VinaCapital.
Since July 2015, Novaland has raised an additional $60 million from two investors based in Switzerland and Hong Kong.
Last year, Novaland recorded VND6.67 trillion in revenue, a yearly increase of 138 per cent, and VND442 billion in post-tax profit, an increase of 360 per cent year-on-year.
In the first half of this year, Novaland’s revenue jumped by 229 per cent from the corresponding period of last year to nearly VND5 trillion.
