Fresh listings set to diversify nation's stock market

From retailers and media groups to financial institutions, a new generation of Vietnamese companies is preparing to enter the stock market.

- By Le Khanh

Electronics retail chain Dien May Xanh, a subsidiary of Mobile World Investment Corp., has unveiled plans for an initial public offering (IPO) as a growing number of Vietnamese companies seek to tap capital markets ahead of the country’s anticipated stock market upgrade.

At an IPO roadshow held in Ho Chi Minh City in late May, Dien May Xanh unveiled plans for its public offering, with Vietcap Securities serving as exclusive financial adviser and lead distribution agent.

At the event, Doan Van Hieu Em, CEO of Dien May Xanh, said the company expects to complete listing procedures in early August.

Based on its current valuation of approximately $3.35 billion, the retailer is trading at a price-to-earnings ratio of around 12 times its targeted 2026 profit of $294 million. Following stronger-than-expected first-quarter results, the ratio is estimated to fall to around 10 times.

Under the plan, Dien May Xanh will offer shares at $3.20 apiece, with proceeds from the IPO expected to reach nearly $550 million.

“The chairman, founding shareholders, CEO and key executives will participate in the IPO using their personal funds. This demonstrates our long-term commitment to the company’s growth strategy after listing,” Em said.

The company also plans to distribute a dividend of around $0.16 per share after listing, funded from retained earnings. This represents a dividend yield of approximately 5 per cent based on the proposed offer price.