Novaland (NVL) to issue bonus shares

Novaland reached out to shareholders on June 5 about issuing bonus shares for the second time, with an expected maximum ratio of 1:0.29.

Shareholders would receive 29 bonus shares for every 100 shares they own. As a result, charter capital increased by 29 percent. Simultaneously, the company paid out shareholder dividends with a maximum expected performance ratio of 1:0.31, boosting charter capital by 31 percent.

Referring to the positive movement of Novaland stock (NVL) since the start of the year, a company spokesperson stated the share dividend would bring far more value to owners than the cash equivalent. The deadline to conclude the feedback list for shareholders is June 29.

The last day to register is June 10, and the ex-dividend date of the share offering to enhance share capital from the previously announced equity source is June 9. Novaland will allocate bonuses in the form of shares at a ratio of 555:198, which means a shareholder owning 555 shares would receive 198 new ones.

Charter capital would grow to roughly VND14,600 billion ($634 million) as a result. If shareholders thrice approve the proposal, the group's charter capital would increase by 118 percent, reaching more than VND23,500 billion.

NVL stock has a strong upward momentum, increasing by about 76 percent since the beginning of March, with an average trading volume of more than $1 billion.

NovaWorld Ho Tram (Ba Ria - Vung Tau), NovaWorld Phan Thiet (Binh Thuan), and Aqua City (Dong Nai) are among the key projects developed by Novaland, scheduled to be implemented earlier than expected over the next three years.

These three projects are all expected to generate revenue and profit over the next three years, five years ahead of schedule, with the total expected profit reaching up to $2 billion.

Perspective of NovaWorld Phan Thiet (Binh Thuan) at a scale of 1,000 hectares. Photo by Novaland.

According to the 2021 annual general shareholder meeting, Novaland's revenue plan this year is estimated at more than VND27,000 billion, with a profit of VND4,100 billion.

A Novaland spokesman said the group would strive to exceed this number based on good sales performance and product handover, assigning projects to other investors for greater profit.

Novaland recorded a land bank of more than 5,400 hectares in the first quarter of this year, including key real estate products in central Ho Chi Minh City and satellite areas; hospitality real estate in cities with tourism potential, ensuring the group's growth in the next seven to 10 years.

Total development value (Gross Development Value - GDV) of the land fund could reach nearly $45 billion. Besides, Novaland is carrying out R&D to expand its industrial real estate.

Several other corporations have stopped paying stockholder dividends. With a series of new high-score records and liquidity, the stock market is expected to provide excitement. Investors will respond positively to the dividend of listed firms with steady business activity and high development potential.

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