Tôn Đông Á resumes plans for HoSE listing with generous dividend

Tôn Đông Á resumes plans for HoSE listing with generous dividend

The company has announced a series of strategic moves, including a more generous dividend policy and various avenues for capital raising, as it seeks to enhance its financial standing and market presence.

Inside a galvalume line of Tôn Đông Á. — Photo courtesy of the company

Tôn Đông Á Corporation is reigniting its ambitions to list on the Hồ Chí Minh Stock Exchange (HoSE) after previously delaying its IPO due to unexpected losses in 2022.

The company has announced a series of strategic moves, including a more generous dividend policy and various avenues for capital raising, as it seeks to enhance its financial standing and market presence.

After a period of inactivity on the Unlisted Public Company Market (UPCoM), Tôn Đông Á is making significant strides to return to the forefront of the market. The company’s Board of Directors has proposed transitioning its stock, currently trading as GDA on UPCoM, to an official listing on HoSE.

This move represents a pivotal moment for the company, which had initially aimed for an IPO in 2021 - 2022, achieving a revenue of nearly VNĐ4 trillion (US$154.3 million) in the first quarter of 2025 and a net profit of approximately VNĐ62.7 billion before its plans were thwarted by a VNĐ276.5 billion loss in 2022.

With financial stability gradually returning, Tôn Đông Á is ready to restart its listing process, pending approval at the upcoming annual shareholders' meeting. This transition is not constrained by the usual timelines between shareholder meetings, allowing for a more agile response to market conditions.

A notable aspect of the company’s strategy is its revised dividend plan, which has been adjusted to be more favourable to shareholders.

Originally, Tôn Đông Á had intended to distribute a 10 per cent cash dividend and 20 per cent in shares for the fiscal year 2023. However, the Board has proposed a more robust plan for 2024, offering a maximum of 40 per cent in total dividends, 10 per cent in cash and 30 per cent in shares.

The cash dividend is set to be distributed on June 12, with a record date of May 13. The share issuance will increase the company’s charter capital from over VNĐ1.1 trillion to VNĐ1.49 trillion, a move designed to bolster its equity base significantly.

It is also exploring additional capital-raising avenues.

Plans include issuing Employee Stock Ownership Plan (ESOP) shares, with a maximum of 3 per cent of the current total shares available, which will be priced at no less than face value and subject to a two-year transfer restriction.

Additionally, Tôn Đông Á is looking to raise capital through a public offering to existing shareholders at a ratio of 3:1.

On the debt side, Tôn Đông Á plans to issue VNĐ500 billion in bonds, which may be either conventional or convertible.

A separate convertible bond issue for nearly VNĐ56 billion is also on the table, intended for Posco Vietnam, with a 12-year maturity and no collateral. This bond can be converted into approximately 2.55 million shares at an expected conversion price of VNĐ21,900 per share.

This year, the company’s financial targets for 2025 include projected revenues of VNĐ18 trillion and a net profit of VNĐ300 billion, reflecting a decrease of 6 per cent and 12.3 per cent, respectively, compared to 2024 figures.

On the stock market, GDA shares closed Tuesday at VNĐ19,600 per share, up 2.08 per cent. 

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