Vietnam steelmaker Ton Dong A eyes Q3 mainboard listing, bond issuance for expansion drive

Ton Dong A Corporation (UPCoM: GDA), one of Vietnam's leading galvanized steel manufacturers, has unveiled plans for a mainboard listing on the Ho Chi Minh Stock Exchange (HoSE) alongside a multi-factory expansion strategy to capture high-value industrial manufacturing segments.

The announcements were made during the company’s AGM held on Friday. The steelmaker expects to secure regulatory approval for its migration from the unlisted public companies market UPCoM to HoSE by the third quarter of 2026.

However, management noted that the exact timing of the listing transition will be carefully weighed against market conditions to ensure maximum shareholder value.

To fund its upcoming capital expenditures, Ton Dong A's board approved a 3-to-1 rights offering, with the issue price set at no less than par value. Additionally, the company plans to issue up to VND500 billion ($19 million) in straight corporate bonds and/or convertible bonds.

For the 2026 financial year, the company targets net revenue of VND16 trillion ($608.08 million), up 4.3% year-on-year, and net profit of VND250 billion ($9.5 million), down 8%. It expects total sales volume of 760,000 tons this year.

The firm also decided on a total dividend payout of 20% for 2025 performance, split equally between a 10% cash payout and a 10% stock dividend.

A central pillar of the company's long-term growth is the construction of its fourth manufacturing facility, located in the Phu My Specialized Industrial Zone in Ho Chi Minh City. The megaproject will have a total capacity of 1.2 million tons per year, with the 300,000-ton-per-year Phase 1 scheduled to commence operations in 2027.

"The Phu My facility is designed to diversify our product portfolio, pivoting toward highly specialized steel lines that cater to the home appliance, interior furniture, and automotive sectors," said CEO Doan Vinh Phuoc at the AGM.

Ton Dong A has successfully commissioned its fifth plant, a steel pipe facility in Phu My 1 Industrial Park. It has an annual capacity of 60,000 tons and began commercial operations in Q1/2026.

Regionally, the company expects its factory in Indonesia to roll out its first commercial products by Q2/2027, sharpening its competitive edge within Southeast Asia.

The heavy investment in downstream industrial steel comes as global protectionism and trade defense measures reshape international steel flows. In response, Ton Dong A has successfully repositioned its business to rely on its home market.

The company’s domestic revenue share jumped dramatically from 41% in 2024 to nearly 74% in 2025, and is projected to touch 75% in 2026.

"Our core strategy is to anchor our growth on the domestic market," stated chairman Nguyen Thanh Trung. "Vietnam's long-term steel demand remains immense. Backed by double-digit economic growth targets, heavy public infrastructure spending, and robust foreign direct investment inflows, national steel output could double to 40-50 million tons by the 2035-2045 period."