MSR shares woo investors ahead of HSX listing

MSR shares woo investors ahead of HSX listing

Masan Group Corporation on May 13 announced the successful sale of nearly 22 million shares in its subsidiary Masan High-Tech Materials.

The overview of Nui Phao mine

Following the transaction, Masan Group Corporation's (MSN) ownership in Masan High-Tech Materials (MSR) decreased from 94.89 per cent to 92.89 per cent. The free float of Masan High-Tech Materials has increased to 7.11 per cent.

As announced on April 1, Masan's wholly owned subsidiary plans to sell up to 5 per cent of MSR's outstanding shares, equivalent to up to 54,991,476 shares, within 12 months. Phase 1, representing 2 per cent of MSR's shares, was oversubscribed, with half of the demand from Masan employees and existing MSN professional investors, reflecting strong conviction in MSR's long-term value.

The transaction marks the first step in MSR's broader value-unlock roadmap, including maintaining public-company eligibility, improving free float and liquidity, strengthening capital markets recognition ahead of its planned HSX migration in 2027.

Future sell-downs may include strategic, institutional and retail investors, supported by growing demand for MSR as one of the few scaled non-China tungsten platforms.

Tungsten prices have re-rated to over $3,000/metric ton unit (mtu), up 700 per cent over the past twelve months, supported by ageing mines, declining grades, long development lead times, high capital intensity, tighter Chinese exports.

At the same time, strategic demand continues to expand rapidly from sectors such as AI, semiconductors, defence, energy, and high-tech manufacturing, where tungsten has few viable substitutes.

R&D at Masan High-Tech Materials

Assuming APT prices average above $1,500/mtu, MSR targets Net Debt-to earnings before interest, taxes, depreciation, and amortisation (EBITDA) of approximately 0.1x by end-2027 and a net cash position by end-2028, positioning MSR to become a stable cash-flow platform with dividend capacity.

In Q1 2026, MSR delivered net revenue of $115 million, up 114.9 per cent on-year, and record quarterly net profit after tax post minority interest of $20.65 million.

Q2 profit is expected to increase, putting MSR on track to meet or surpass its FY2026 guidance of $780.77 million in revenue and $96.15 million in net profit after tax post minority interest, while targeting a Net Debt-to EBITDA below 1.7x by year-end.

VIR