Hoa Phat wants to list its agricultural sector

Buddha — Animal feed production line of Hoa Phat Agriculture

On September 16, Hoa Phat Agricultural Development Joint Stock Company (HPA), a subsidiary of Hoa Phat Group, submitted its initial public offering (IPO) documents to the State Securities Commission. The company plans to list its shares on the Ho Chi Minh City Stock Exchange (HoSE) in December, with the code HPA.

The maximum number of shares offered for sale is 30 million units, equivalent to 11.7% of charter capital. The selling price will not be lower than the book value per share of this enterprise, equivalent to over 11,887 VND. The mobilized capital will be used by billionaire Tran Dinh Long's subsidiary to contribute to farms, animal feed factories, and supplement working capital for business operations.

Before Hoa Phat, many companies also wanted to list their subsidiaries on the stock exchange such as Gelex , VPBank, Techcombank... Explaining this trend, Mr. Nguyen Anh Duc, Executive Director of Institutional Brokerage and Investment Consulting of SBB Securities (SBBS), said that the "big guys" may want to raise capital from outside instead of pouring more money into their subsidiaries.

A favorable market is also a condition for businesses to IPO their subsidiaries, according to Mr. Tran Quoc Toan, Director of Branch 2 - headquarter of Mirae Asset Securities Joint Stock Company. Since the beginning of the year, VN-Index - the index representing Vietnamese stocks - has increased by 33%, closing the session on September 15 at 1,685 points. Market liquidity since the beginning of August has reached over VND39,000 billion per session, equivalent to USD1.5 billion.

Hoa Phat was established in 1992 and is the largest steel producer in Vietnam and Southeast Asia. Operating in logistics, agriculture, real estate... but 90% of the group's revenue still comes from steel.

Hoa Phat Agriculture Company was established in 2016, with 99.99% of capital held by Hoa Phat Group. This enterprise currently produces animal feed, raises cows, pigs, poultry and is the leading chicken egg market share in the North with an output of 1 million eggs per day.

According to Hoa Phat's 2024 annual report, the agricultural sector brought in revenue of VND 7,081 billion, an increase of 12% compared to 2023. Pre-tax profit was VND 1,038 billion, 5 times higher than the same period last year.

Compared to other companies in the same industry on the stock exchange, Hoa Phat Agriculture's profit is only less than Dabaco's, surpassing many big names such as BAF Agriculture, Hoang Anh Gia Lai or Masan MeatLife...

In the first half of this year, the company recorded 4,325 billion in revenue. After-tax profit reached 939 billion, more than double last year.

PV (synthesis)

Source: https://baohaiphong.vn/hoa-phat-muon-niem-yet-mang-nong-nghiep-521041.html