The planned IPO of DMX, which operates MWG's key retail segments for phones, electronics, and home appliances, marks a strategic transition aimed at sustaining double-digit profit growth. DMX runs various brands, including Thegioididong, TopZone, Dien May Xanh, and Erablue.
In a 12/12 announcement, The Gioi Di Dong Investment Joint Stock Company leadership emphasized that DMX's independent listing would diversify investor choices. This move is also expected to provide long-term strategic, financial, and managerial advantages for the parent company, expanding growth opportunities for the entire ecosystem.
This IPO plan follows MWG's recent restructuring, which specialized its business operations. Beyond DMX managing electronics retail, two other segments – pharmaceuticals and mother and baby products – are now managed by independent legal entities. This reorganization seeks to enhance autonomy and operational efficiency across the group.
The move aligns with a broader trend among Vietnamese listed companies to bring subsidiaries to the stock market. Companies like Hoa Phat, Hoa Sen, and Gelex are pursuing similar strategies. Experts attribute this recent surge in subsidiary listings partly to new regulations that have streamlined foreign investor ownership, free-float ratios, and shortened the post-IPO listing timeframe.
The Gioi Di Dong stated they will not participate in DMX's private placement. This offering, representing 1% of DMX's charter capital, is exclusively for key management, reinforcing long-term commitment. Shares issued are restricted from transfer for 18 months.
Data from the first 10 months of the year shows the phone, electronics, and home appliance retail segment generated nearly 87 trillion VND in revenue, a 17% increase year-on-year. This segment accounted for almost 68% of The Gioi Di Dong's total revenue.
DMX maintains a significant retail footprint and clear operational strategies for the coming year. The Dien May Xanh chain currently boasts 2,017 stores, while Thegioididong and Topzone combine for 1,012 locations. Additionally, the company operates 158 stores through a joint venture in Indonesia.
Earlier this year, MWG's leadership aimed to boost revenue and market share in the electronics retail segment despite challenging market demand. The strategy focuses on optimizing existing stores rather than opening new ones, improving sales performance, and enhancing customer experience through financial solutions like deferred payments and lifetime after-sales services.
Phuong Dong
