Realty giant Phat Dat nets $52.7 mln from public offering for project development

Phat Dat Real Estate Development Corp, one of the leading property developers in Vietnam, has successfully raised VND1.34 trillion ($52.72 million) through a public offering to finance various projects.

Listed on the Ho Chi Minh Stock Exchange as PDR, the firm has completed the issuance of all 134.3 million shares to 23,945 investors at a price of VND10,000 ($0.39) apiece.

The proceeds will be used to finance the development of the 1.18-hectare Thuan An 1 and 2.65-ha Thuan An 2 residential complexes in the southern province of Binh Duong, along with urban subdivisions 2 and 9 at the Nhon Hoi ecotourism urban project and the 43.16-ha Bac Ha Thanh residential project, both located in the south-central province of Binh Dinh.

During the offering, PDR’s chairman Nguyen Van Dat, and his foundation, Phat Dat Holdings Company Limited, spent VND638 billion ($25 million) to maintain their 47.5% stake in the firm, with Dat holding 38.84%.

Nguyen Thi Minh Thu and Nguyen Tan, Dat’s daughter and son, have registered to sell a combined 1.7 million shares after acquiring them during the offering. With PDR shares priced at VND24,500 ($0.96) each, they would earn around VND42 billion ($1.65 million) from the sale.

In addition, the enterprise plans to issue another 313.6 million shares to raise its charter capital to VND10.52 trillion ($413.44 million), including 14.6 million shares under the employee stock ownership plan (ESOP), at VND12,000 ($0.47) apiece, and 131 million shares distributed from retained earnings.

The firm also has a $30 million loan from ACA Vietnam Real Estate III LP, disbursed in 2022. The loan can be converted into 34 million common shares from the outstanding principal at a price of VND20,000 ($0.79) apiece.

This year, the firm targets VND2.98 trillion ($117.08 million) in revenue, down 6% year-over-year, and VND880 billion in net profit, up 29%. In the first quarter of 2024, the company posted a net profit of VND53 billion ($2.08 million) on revenue of VND161 billion ($6.32 million).