Dien May Xanh pays $1.45 bln in dividends to Mobile World ahead of IPO

Dien May Xanh Investment JSC, a Vietnamese retailer of electric and electronic home appliances, has paid over VND38.04 trillion ($1.45 billion) in dividends to its parent company - Mobile World Investment Corporation (HoSE: MWG) - ahead of a planned initial public offering.

The company plans to offer up to 179.5 million shares in the IPO, equivalent to a 16.3% stake. Its charter capital is expected to rise to nearly VND12.81 trillion (VND487.5 million) from over VND11.01 trillion after the offering.

The offering price will be decided by the board of directors but will not be lower than the company’s book value of VND16,163 ($0.62) per share based on its audited 2025 consolidated financial statements and valuation results. Proceeds from the share sale will be used to repay short-term debt.

The MWG board late last year okayed a plan for Dien May Xanh to conduct an IPO and stock market listing. The plan is expected to be rolled out in 2026, MWG stated on December 12, 2025.

After the IPO, the company plans to list its shares on the Ho Chi Minh Stock Exchange (HoSE) or trade on the unlisted public companies market (UPCoM) market if listing conditions are not met. The move aims to improve transparency, strengthen its brand, and enhance access to capital.

Dien May Xanh Investment operates several retail chains including Thegioididong.com, Topzone, Dien May Xanh, EraBlue, and Tho Dien May Xanh. The company is the main profit driver for MWG.

In 2025, Dien May Xanh posted revenue of VND109.48 trillion ($4.17 billion) and net profit of over VND5.8 trillion (220.84 million), accounting for nearly 70% of MWG’s revenue and 82% of its profit.

The company also paid a dividend of 349.5% of par value in 2025, equivalent to nearly VND38.45 trillion ($1.46 billion). With a 98.95% stake, MWG received over VND38.04 trillion ($1.45 billion).

Following the IPO, the company plans to distribute up to VND3.2 trillion ($121.8 million) more in dividends from retained earnings recorded in its audited consolidated financial statements as of December 31, 2025.

The planned dividend for 2026 is 25% of par value, based on the assumption that the company successfully sells the 179.5 million shares and distributes up to VND3.2 trillion ($121.8 million) in cash dividends. For 2027, the dividend payout ratio is projected at 28.7%, based on a plan to distribute 50% of 2026 net profit.

This year, the company targets revenue growth of 12% to VND122.5 trillion (4.66 billion) and a 26.7% increase in profit to VND7.35 trillion ($279.75 million). Growth is expected to moderate by 2027, with revenue rising 10.2% and profit increasing 15.3%.

Strategic priorities for 2026 include enhancing customer value and experience, improving operational efficiency, promoting employee ownership mindset, and strengthening partnerships for sustainable development.

The company also plans to shift from a traditional retail model to a comprehensive service platform covering sales, financial services, warranties, maintenance, and product upgrades.

In addition, it aims to leverage thousands of skilled technicians to develop a multi-service platform providing repair and maintenance services for tens of millions of households in Vietnam, while upgrading its Quà tặng VIP loyalty app into a hub connecting its ecosystem with personalized services.

Dien May Xanh also plans to accelerate the expansion of the EraBlue chain in Indonesia, targeting more than 300 stores and 30% revenue growth, with a roadmap toward an IPO before 2030.

On the HoSE, MWG shares closed Wednesday at VND83,600 ($3.18) apiece.