Shares of Vietnam's leading developer Novaland sink to record low

Shares of Vietnam’s leading real estate developer, Novaland, fell below par value to VND9,920 ($0.39) apiece on Friday, marking their lowest level since the company’s listing in late 2016.

Trading liquidity reached VND87.8 billion ($3.46 million), with over 8.7 million Novaland shares changing hands during the session. Notably, nearly two-thirds of these shares were offloaded by investors.

At the close of trading, Novaland’s market capitalization, listed on the Ho Chi Minh Stock Exchange as NVL, had dropped to VND19.34 trillion ($762.5 million).

Since the beginning of 2024, NVL shares have declined by nearly 41%. Compared to their all-time high of VND92,366 ($3.64) per share in late June 2021, the stock’s market price has plunged by 90%.

NVL shares have been undergoing corrections since late 2024.

Recently, Novaland announced that bondholders of its $300 million international bond package must pay more than triple the market price to convert their bonds to shares. These international convertible bonds were issued for foreign investors without warrants and collateral in 2021, which are listed on the Singapore Stock Exchange.

The conversion price is set at VND36,000 ($1.41) per NVL share, and the conversion ratio is one bond per 149,038 shares. The conversion price is 3.5 times the NVL price of VND10,250 ($0.4) as of December 31, 2024.

As part of its financial restructuring efforts, Novaland plans to repurchase all bonds issued since 2020 ahead of their maturity dates for an estimated of maximum VND7 trillion ($275 million).

After nearly two years of comprehensive restructuring, Novaland said it has successfully restructured most of its debts. The company has also secured additional capital to implement its project.

In the first nine months of 2024, Novaland posted nearly VND4.3 trillion ($170 million) in net revenue, up 57% year-on-year. It incurred a net loss of VND4.37 trillion ($172 million) in the period.