Property developer Hung Thinh eyes $200 million proceeds from IPO

Vietnamese property developer Hung Thinh Land is aiming to raise at least $200 million from its initial public offering (IPO) next year, putting up a 10% stake.

With its market value estimated at around $2 billion this May by VinaCapital Group, one of Vietnam’s leading asset management and real estate development companies, the IPO to get listed on the Ho Chi Minh Stock Exchange (HoSE) is expected to meet its target.

A Thursday Bloomberg report cited an unnamed company source as saying that offering a larger stake was also a possibility, depending on investor demand.

Hung Thinh Land is a member of Ho Chi Minh-based Hung Thinh Group, a fast expanding real estate developer in the country with several major projects in its portfolio.

The company recently received a $78 million investment from Vietnam-focused Dragon Capital and another $25 million from VinaCapital Group. The latter said that Hung Thinh Land’s IPO would make it the third largest property developer on the HoSE, behind Vinhomes JSC of Vietnam’s largest listed conglomerate Vingroup, and NovaLand.

Hung Thinh Land’s portfolio includes more than 3,300 hectares across the country. It has been building 59 real estate projects of various types, providing the market with more than 30,000 products. The finished projects in HCMC include Lavita Charm apartments, Boulevard apartments, SaigonMia apartments, and Moonlight Residences.

In hospitality real estate, the company is a leading developer with prominent projects across the nation. One of them is the $2.5 billion Merry Land Quy Nhon resort, covering up to 695 hectares in Quy Nhon town, the central coastal province of Binh Dinh.

The complex will have Vietnam’s largest and longest water music square, the longest canal system in Vietnam, an 18-hole golf course, a marina, and two yachts. Facilities in the area will be operated by U.S.-based Marriott International. The firm started construction in 2021.

The U.S.-based Boston Consulting Group and Hung Thinh Group launched in January a partnership to develop another large-scale tourism development project in Quy Nhon.

The project, set for completion by 2030, aims to help make the south-central town a leading tourist destination in Asia. The partners have not revealed the estimated investment for the mammoth project. On March 14, 2022, the partnership and Quy Nhon’s administration started works on the project after an initial survey conducted by Boston Consulting Group.

The study determined that marine tourism was Quy Nhon’s core asset in the hospitality sector, boasting 72 kilometers of beautiful coastline and many beaches on par with the most famous destinations in Asia.

“We are working on building a vision so this city can become a leading tourism destination in Asia and the world,” said II-Dong Kwon, CEO of Boston Consulting Group Vietnam who heads the partnership.