Businesses race to increase capital

DIC Corp, Hoang Quan Real Estate, Dat Xanh, Taseco Land, PVPower… are looking to raise capital to take advantage of the stock market during the euphoric period that has lasted in recent months.

Enterprises promote capital mobilization plans

As the stock market booms, with indexes and stocks hitting record highs with record liquidity, listed companies are also looking to raise new capital.

Construction Development Investment Joint Stock Corporation (DIC Corp, code DIG), after many delays and cancellations of the offering plan, has returned to offering shares to existing shareholders at a ratio of 1,000:232, equivalent to offering 150 million shares to raise VND 1,800 billion, expected to be implemented from the third quarter of 2025 to the first quarter of 2026.

Notably, not long before the planned offering date, on April 22, 2025, DIG shares were only trading around VND 13,400/share, 11.7% higher than the offering price of VND 12,000/share. After a period of rapid increase, as of August 12, DIG shares were trading around VND 23,150/share, 92.9% higher than the offering price to existing shareholders.

At the price of VND 23,150/share, DIG stock is trading at a P/E of up to 139.37 times, higher than the industry average of 17.81 times; P/B valuation is 1.81 times, higher than the industry average of 1.44 times.

Similarly, the Hanoi South Housing and Urban Development Investment Corporation (code NHA) approved a plan to offer nearly 16.2 million shares to raise VND161.97 billion. Of which, the amount raised will be used to pay expenses and/or repay bank loans to finance projects being invested in.

Similar to DIG stock, NHA stock increased by 50% from April 9 to August 12, from VND 17,500 to VND 25,100/share.

Regarding the financial situation, as of June 30, 2025, Nam Ha Noi Housing and Urban Development Investment Corporation only owned VND 5.6 billion in cash, but the total debt was up to VND 142.6 billion, accounting for 25.2% of total equity. In which, the majority of assets are mainly recording construction costs in progress at projects, so the capital demand is large.

Please propose to increase capital when the market is favorable.

Hoang Quan Real Estate Trading and Service Consulting Joint Stock Company (code HQC) is a special case, when the stock is only trading at 4,000 VND/share, 60% lower than the par value, but the Company still plans to issue 50 million shares privately to convert debt.

Nominally, Hoang Quan Real Estate plans to issue individual shares at a price much higher than the market price, but according to the creditor - Hai Phat Investment Joint Stock Company, the unit that will convert 212 billion VND of receivables into 21.2 million HQC shares - Hoang Quan Real Estate commits to be ready to supplement other assets such as HQC shares of third parties, cash and other real estate to ensure that, if Hai Phat Investment divests these convertible shares when eligible, then in any case, if there is a shortage, Hoang Quan Real Estate will supplement the difference to ensure that Hoang Quan Real Estate recovers enough debt from Hoang Quan Real Estate with the amount of 212 billion VND.

At Dat Xanh Group (DXG), this unit plans to issue 93.5 million shares privately at VND18,600/share, raising VND1,739.1 billion, expected to be implemented from the third quarter to the fourth quarter of 2025. Of which, the mobilized amount will be contributed to member units to implement the Green Vision high-rise apartment complex project (DatXanh Homes Parkview) in Ho Chi Minh City (formerly Thuan An, Binh Duong ).

In fact, although the private issuance did not affect the market price, DXG shares also experienced a strong increase from April 9 to August 12, increasing by 105% to VND 21,550/share, equivalent to a P/E of 62.07 times, higher than the industry average of 17.81 times.

In addition, some enterprises are also requesting capital increase policies such as Vietnam Oil and Gas Power Corporation - JSC (PVPower, code POW) is also planning to submit an extraordinary shareholders' meeting in September to approve the plan to offer/issue shares to increase charter capital; Taseco Real Estate Investment Joint Stock Company (Taseco Land, code TAL) plans to close the list of shareholders to get opinions on approving the plan to issue individual shares to increase capital...

Thus, when the stock market is favorable and stocks are rising rapidly, businesses have been promoting plans to issue shares, requesting approval to offer shares to raise cheap capital on the stock exchange.

Source: https://baodautu.vn/doanh-nghiep-chay-dua-tang-von-d359434.html