Dien May Xanh plans $574 million IPO to fund regional expansion

Dien May Xanh plans $574 million IPO to fund regional expansion

Vietnam’s leading consumer electronics retail chain Dien May Xanh is planning to raise more than $574 million through an initial public offering (IPO) to fund its transition towards high-margin service segments and regional expansion.

The company aims to issue 179.5 million new shares at an offering price of $3.2 per share. With over 1.1 billion shares outstanding, Dien May Xanh (DMX) is currently valued at $3.52 billion pre-IPO.

Mobile World Group (MWG), DMX’s parent company, represents the sole major shareholder with a 99 per cent stake, while the foreign ownership limit currently stands at 49 per cent.

The subscription timeline for the IPO will extend between May 27 and June 17, with official listing on the Ho Chi Minh City Stock Exchange commencing at a later date.

According to the company prospectus released on May 22, DMX is currently in a transition phase, shifting away from store-expansion-led growth to focus on operational efficiency and cash flow sustainability.

This quality-driven turnaround, which began in 2023, has already yielded substantial results, triggering a 3.2-fold recovery in 2025 net profit to approximately $232 million following the strategic closure of 412 underperforming outlets.

DMX now commands a dominant 60 per cent market share in mobile phones and a 40 per cent market share in consumer electronics across the nation.

At the first-quarter earnings call in late April, MWG management described DMX as the cash cow of the group, contributing up to 80 per cent of total consolidated revenue, while grocery retail chain Bach Hoa Xanh will serve as the next primary growth engine.

“DMX’s business model is complete, without much further capital expenditure, so the company is committed to paying cash dividends of at least 50 per cent of annual after-tax profits onwards,” the company’s management remarked at the call.

After restructuring its operations between 2023 and 2025, DMX has organised its business into five main areas. These include its core electronics retail chains (TGDD, DMX, and TopZone); consumer finance and utility services; after-sales repair and maintenance services under DMX Technician; its e-commerce platform SuperApp; and international expansion through the EraBlue joint venture in Indonesia.

The consumer finance division carries zero credit risk for DMX, operating entirely on a commission fee basis, with penetration rate reaching 35 per cent of total retail revenue in 2025.

Meanwhile, DMX Technician has evolved into the country’s largest technical service ecosystem, deploying 8,000 employees, 4,100 specialised technicians, 700 trucks, and 300 warehouses while securing lucrative B2B contracts with V-Green charging stations and Bach Hoa Xanh outlets.

For long-term growth, DMX is targeting Indonesia's underpenetrated information and communications technology and consumer electronics (ICT/CE) market through EraBlue. Operating on the island of Java, which has a population of 150 million and lacks a modern retail presence, EraBlue's smaller store model has proven highly efficient. It generates double the average revenue of similar domestic DMX formats with a short 16-month store payback period.

DMX revenue mix for 4M2026. Source: DMX

According to Vietcap Securities, Vietnam still remains the fastest-growing ICT/CE market in Southeast Asia, with the total market size projected to hit $15 billion by 2030 at a compound annual growth rate of over 8 per cent.

However, as penetration rates of key product categories approach the regional average of 90 per cent, consumer demands are shifting from first-time purchases to upgrade cycles, driven by a recent new wave of AI-integrated products.

Vietcap analysts saw DMX’s pivot towards advanced after-sales, digital ecosystems, and consumer financing mirrors this industry transition towards quality-centric value creation.

Reflecting this strategy, the company’s business results for the first four months of 2026 demonstrated robust momentum across all five pillars. Total revenue reached $1.74 billion, successfully completing 35 per cent of its full-year guidance of $4.9 billion. This performance represents a 32 per cent increase on-year, underpinned by a strong same-store sales growth rate of 33 per cent.

In the core retail segment, revenue expansion was broad-based across all brands despite no new store openings. TGDD and DMX chains recorded revenue growth of 33 per cent and 30 per cent, respectively. TopZone, Apple’s authorised retail chain, delivered a 39 per cent revenue increase, propelled by a 60 per cent surge in Apple product sales.

Internationally, the EraBlue joint venture in Indonesia posted a 94 per cent revenue jump on 20 per cent same-store sales growth, expanding its network by 123 stores on-year to reach 222 locations.

DMX’s service and digital ecosystems also displayed significant acceleration. Consumer finance services revenue surged 48 per cent on-year, accounting for 38 per cent of total company revenue and achieving a 96 per cent financing eligibility rate across products.

Concurrently, the gross merchandise value of utility payments and agent banking services rose 9 per cent on-year to $1.48 billion.

In the after-sales services segment, DMX Technician generated $50.08 million in revenue, a 60 per cent surge, with external client revenue rising 45 per cent to $6.12 million to make up 12 per cent of the segment’s total.

VIR