Vietnam property developer Hung Thinh Land files for local IPO after $103m PE funding

Vietnamese property developer Hung Thinh Land, which raised $103 million in a funding round recently, has filed for an initial public offering (IPO) on the Ho Chi Minh City Stock Exchange (HOSE), the company said in a statement on Friday.

Hung Thinh Land said it submitted its IPO application to the State Securities Commission on July 19, while it expected to list in 2023. In Vietnam, publicly listing takes place within a year from the IPO date.

Bloomberg reported on Friday that the Ho Chi Minh City-headquartered firm has planned to offer a 10% stake, hoping to raise at least $200 million in the IPO, which translates into a market cap of 50 trillion dong ($2.1 billion).

Last month, Hung Thinh Land announced a $103 million investment from local asset managers Dragon Capital and VinaCapital.

VinaCapital said its Vietnam Opportunity Fund injected $25 million in Hung Thinh Land in May. The firm added that after listing, Hung Thinh Land “is expected to become the third largest real estate developer on HOSE”, behind Vingroup’s subsidiary Vinhomes, and Novaland.

Vinhomes and Novaland currently command a market capitalisation of around $10.9 billion and $6.2 billion respectively.

Established in 2002, Hung Thinh Land has, to date, developed 59 residential and hospitality projects catering to different market segments, primarily in southern Vietnam. Earlier this year, the firm started developing affordable housing.

Hung Thinh Land’s total assets stood at 51.4 trillion dong by end-2021, a 2.5x year-on-year growth. Its 2021 revenue tripled to nearly 5 trillion dong, while profit reached 1.7 trillion dong, representing a 4x increase and net profit margin of over 34%.

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