The foreign ownership limit at Hang Xanh Motors Service JSC, the top distributor of Mercedes-Benz vehicles in Vietnam with about 40% of the market share, has been raised from 34.85% to 50%.
Hang Xanh Motors, listed on the Ho Chi Minh Stock Exchange (HoSE) as HAX, on Thursday said the move was due to the conversion of bonds, which were issued in February 2022 under code HAXH2223001, into shares for domestic investors.
The bond issuance worth VND180 billion ($7.56 million) aimed to aid business operation and open a showroom in the southern city of Can Tho.
HAX earned net revenue of VND6,775 billion ($288.92 million) and after-tax profit of nearly VND240 billion ($10.23 million) last year, up 22% and 50% year-on-year, respectively.
Haxaco set a Mercedes-Benz sales record last year with 2,804 cars, higher than any other Mercedes-Benz distributor. Its sales made up more than 38% of the German brand in Vietnam.
HAX shares closed down 3.59% at VND16,100 ($0.68) on Friday.