Dat Xanh Real Estate (DXG) to IPO real estate services segment in late 2019
Dat Xanh Real Estate Service and Construction Corp (DXG) plans to hold an initial public offering (IPO) for its real estate services segment in late 2019 or early 2020.
The information was released by the DXG Chairman Luong Tri Thin during the company’s annual general meeting (AGM) in HCM City on Saturday.
DXG plans to list its remaining four segments, investment, construction, materials and industry, on the stock market by 2023, Thin said.
This year, DXG has a revenue target of VND5 trillion (US$2.13 million), up 7.6 per cent year-on-year. It hopes to pay dividends at the rate of 20 per cent.
Shareholders said that with this plan, the growth rate of DXG is not much higher than 2018. However, Thin said that in nearly 10 years of listing, the company had always achieved its growth plans and even exceeded them.
But this year, the company was re-structuring its operational model and preparing for a five-year plan toward greater development so DXG should be more cautious with targets, Thin said.
It is expected that in the second quarter of 2019, DXG will launch and sell projects nationwide.
The AGM also authorised the board of directors to decide on the provision of loans and credit guarantees for subsidiaries, and vice versa, with the value of each loan and credit guarantee not exceeding 20 per cent of total asset value in the nearest audited financial statements.
DXG will also issue 170 million shares for 2018 dividend payments, employee stock ownership plan (ESOP) shares issuance and share issuance to existing shareholders.
Of the estimate, DXG will issue 76.96 million shares to pay 2018 dividend at the rate of 22 per cent.
Six million shares will be issued as ESOP shares.
Some 87.45 million shares will be issued to shareholders at the issuing price of VND10,000 per share. The proceeds of VND875 billion earned from the issuance is expected to develop residential projects and resettlement housing projects of Gem Riverside project in Nam Rach Chiec area in HCM City’s District 2.
At the trading session on Friday, DXG’s share price closed at VND24,200 per share, 2.4 times higher than the expected issuance price.
At the AGM, shareholders recommended paying dividends in cash for 2019.
“As a major shareholder, I also like to receive dividend in cash, but DXG is currently in a strong development phase, needing to invest, to mobilise capital, so it is not reasonable to allocate money at this time. DXG’s market price is currently VND24,200 per share with high liquidity, so it is very beneficial for shareholders to receive dividends in shares”, Thin said at the meeting.