Vietnam's property major DIC Corp to offer 150 mln shares to shareholders

Development Investment Construction JSC (DIC Corp), among Vietnam's biggest real etate developers, will offer 150 million shares to shareholders at VND12,000 ($0.46) apiece.

The offering price is nearly 50% lower than the market price. The implementation time is from the third quarter of this year to the first quarter of next year.

If the issuance is successful, DIC Corp will expand its chartered capital from VND6,464 billion ($247 million) to nearly VND8,000 billion ($305.8 million), up 24%.

Stock price increases nearly 60% in 3 months

In line with the positive sentiment seen at real estate stocks, DIC Corp shares (Ho Chi Minh Stock Exchange or HoSE: DIG) recorded a strong rise in a short period of time.

Since the beginning of July, DIG has increased by 20%. If calculated from the April 23 session, it has surged by 57% to hover at VND21,000, the highest price range since September 2024.

In the context of the real estate market being cleared of legal obstacles and transactions gradually warming up, DIC Corp has recorded many positive developments which help support the stock price.

In mid-April, the group announced Vinh Phuc province had issued a document confirming that 346 land lots in the Nam Vinh Yen new urban area project - phase 1, with sufficient technical infrastructure, are eligible for transfer to individuals to build their own houses.

Of which, seven lots are located in Subdivision 1 and 339 lots in Subdivision 2, with a total commercial land area of 51,419 square meters. Based on the current selling price, DIC Group is expected to receive about VND853 billion ($32.61 million) from this transfer.

Nam Vinh Yen New Urban Area - Phase 1 is invested by DIC Corp, with a scale of 190 hectares and a total investment of up to VND20,281 billion ($775.3 million).

At the end of June, DIC Corp stated that the People's Committee of Ha Nam province has allowed the entire Lam Ha Center Point residential project to be transferred.

DIC Corp has deployed this project since 2019. It lies in Lam Ha ward, where the new urban center of Phu Ly town, Ha Nam province is located.

The over 12-hectare project has a total investment of over VND2,115 billion ($80.85 million). It is planned synchronously with subdivisions of five-storey commercial townhouses, villas, and land fund for social housing.

Nguyen Quang Tin, general director of DIC Corp, said that the transfer of Lam Ha Center Point will contribute significantly to the business results in 2025, helping to increase cash flow for its other investment activities.

DIC Corp is expected to reap more than VND1,114 billion ($42.58 million) in revenue from the transaction.

According to the Q1 financial statement, the group recorded unfinished business costs at the project of VND798.2 billion ($30.51 million). Thus, it is estimated that it will record a profit of more than VND300 billion ($11.47 million) from this transaction.

Offering 150 million shares to shareholders

Given favorable market developments and cash flowing into real estate stocks, DIC Corp's board of directors decided to offer 150 million shares to existing shareholders at the ratio of 23.2%. Shareholders owning 1,000 shares can buy 232 new shares.

The group plans to collect VND1,800 billion ($68.81 million) to invest in the Cap Saint Jacques complex project - phase 3 (VND600 billion) and Vi Thanh commercial residential area (VND600 billion), and spend the remaining on repurchase of DIG12301 bonds.

Previously, DIC Corp had completed the issuance of nearly 36.6 million shares to pay a dividend of 6%. Charter capital then increased to VND6,464 billion ($247 million). These shares already arrived at investors' accounts and have been traded since July 2.

On the HoSE, DIG shares closed Friday at VND20,600 ($0.79) apiece.

Vinh Phuc, Hoa Binh and Phu Tho provinces were recently merged to form the new Phu Tho province, which borders Lao Cai, Ninh Binh, Son La, Thai Nguyen, Thanh Hoa, Tuyen Quang, and Hanoi.

Meawhile, Ha Nam, Nam Dinh and Ninh Binh were merged to establis the new Ninh Binh province, which borders Hung Yen, Phu Tho, Thanh Hoa, Hanoi, and the East Sea.

The National Assembly, Vietnam's legislature, on June 12 passed a resolution that reduces the country's number of provinces and cities from 63 to 34, effective immediately.