Vietnamese realty player DIC Corp guns for profit, capital base spikes

Development Investment Construction JSC (DIC Corp), among the top real estate developers in Vietnam, targets to earn VND1.01 trillion ($40.7 million) in pre-tax profit this year, up 508.9% year-on-year.

In a report submitted at its annual general meeting, DIC Corp said it aims for VND2.3 trillion in consolidated revenue this year, a 72% rise over its 2023 performance.

The builder targets a dividend of 8-15% for this year.

The firm, listed on the Ho Chi Minh Stock Exchange as DIG, plans to invest a total of VND7.2 trillion ($290.6 million) this year, with VND811 billion allocated to financial investments and VND6.4 trillion earmarked for projects such as the Long Tan-Dong Nai tourism urban area in Dong Nai province and the Nam Vinh Yen new urban area in Vinh Phuc province.

To finance its investments, DIC Corp plans to issue 410.4 million shares for VND6.5 trillion ($262 million), lifting its charter capital to VND10.2 trillion ($411 million) from the current VND6.09 trillion.

Of the total, the firm plans to issue up to 200 million shares via a rights offering at VND15,000 ($0.6). Proceeds will be used to repay bonds issued in 2021 and finance two projects in Vung Tau town (Ba Ria-Vung Tau province) and Vi Thanh town (Hau Giang province).

In addition, it will issue 30.49 million shares via a stock dividend and additional equity financing; 30 million shares under its employee stock ownership plan (ESOP); and 150 million shares via a private offering at VND20,000 ($0.8) or more apiece.

DIG shares closed on Friday down 1.5% at VND32,200 ($1.3) each.