Điện Máy Xanh opens subscriptions for $546 million IPO ahead of HOSE debut

Điện Máy Xanh opens subscriptions for $546 million IPO ahead of HOSE debut

The company is offering 179.5 million shares at a fixed price of VNĐ80,000 ($3.04) each, with subscriptions open until June 17.

Điện Máy Xanh targets 2026 revenue of VNĐ122.5 trillion and after-tax profit of VNĐ7.35 trillion, up 15 per cent and 20 per cent, respectively, from the previous year. — Photo thegioididong.com.vn

Điện Máy Xanh opened subscriptions on Wednesday for a VNĐ14.36 trillion (US$546 million) initial public offering (IPO), marking one of Việt Nam’s biggest retail-sector share sales in more than a decade as the electronics retailer prepares for a planned listing on the Hochiminh Stock Exchange in August.

The company is offering 179.5 million shares at a fixed price of VNĐ80,000 ($3.04) each, with subscriptions open until June 17 and allocation results due on June 18-19. Investors must place a deposit equal to 10 per cent of the registered purchase value.

Điện Máy Xanh, which is reported to hold more than 50 per cent of Việt Nam’s electronics retail market, posted first-quarter revenue of more than VNĐ32.4 trillion, up 33 per cent year-on-year, while net profit rose nearly 49 per cent to VNĐ2.2 trillion.

The retailer targets 2026 revenue of VNĐ122.5 trillion and after-tax profit of VNĐ7.35 trillion, up 15 per cent and 20 per cent, respectively, from the previous year.

The IPO is being launched as consumer spending in Việt Nam shows signs of recovery and domestic equity markets attract renewed retail investor interest.

The company said proceeds would support its long-term expansion strategy, including higher-margin recurring services such as consumer finance, extended warranties and maintenance.

Điện Máy Xanh also plans to maintain a minimum annual cash dividend payout ratio of 50 per cent of net profit and may distribute a special dividend of VNĐ4,000 per share after listing, equivalent to a yield of about 5 per cent based on the IPO price.

Brokerage firm Vietcap estimated the retailer could post after-tax profit of VNĐ9.3 trillion this year if current growth momentum continues, implying a forward price-to-earnings ratio of around 10 times.

Shares are expected to begin trading on HOSE in early August. 

Bizhub