HANOI: To bolster their financial capabilities, many real estate companies are viewing share issuance as a strategic capital mobilisation approach.
It comes as the real estate market gradually recovers, prompting firms to explore various funding methods to expedite project timelines.
Several leading real estate companies have announced plans to release substantial quantities of shares to enhance liquidity for key projects.
Whether through private placements or offerings to existing shareholders, these initiatives are seen as vital for strengthening financial foundations while aligning with the government’s push for institutional reform and comprehensive infrastructure investment.
This trend also marks a shift towards real demand, reducing speculation in the market.
Recent developments illustrate a clear trend among large real estate firms to raise capital through the stock market.
Dat Xanh Group has approved a plan to issue 93.5 million shares at a price of 18,600 dong per share, aimed at raising nearly 1.74 trillion dong (US$65.9mil).
This capital will be allocated for the DatXanhHomes Parkview project in Ho Chi Minh City.
Similarly, DIC Group has announced a plan to sell 150 million shares to existing shareholders at 12,000 dong each, with expected proceeds of 1.8 trillion dong.
These funds will support two strategic projects: the Cap Saint Jacques complex and a commercial residential area in Vi Thanh Ward, Can Tho City.
In the northern region, Thang Long Investment Group plans to issue over 193 million shares, targeting about 1.9 trillion dong in capital, primarily for the second phase of the Vuon Vua Resort & Villas project in Phu Tho Province.
Hanoi South Housing and Urban Development Corporation has revealed plans to issue more than 16 million shares for a project in Duy Tien, while Hoang Huy Financial Services Investment Corporation aims to raise over two trillion dong through a 200 million share offering for two major projects in Hai Phong.
Dr Bui Duc Hung, a former director at the Construction Ministry, said that the real estate market’s recovery would be reinforced by two key factors: synchronised infrastructure investment and timely institutional reforms.
On Aug 19, the nationwide inauguration and groundbreaking of 250 significant projects marked a pivotal moment, showcasing the government’s commitment to enhancing connectivity and regional economic development.
With an estimated investment value nearing 1.3 quadrillion dong, this unprecedented surge in aggregate demand was anticipated to contribute approximately 18% to gross domestic product in 2025 and over 20% in subsequent years.
This development was expected to stimulate credit supply and foster economic growth, generating millions of jobs while balancing economic expansion with social welfare, Hung said. — Viet Nam News/ANN
