On 16/9, Hoa Phat Agricultural Development Joint Stock Company (HPA), a subsidiary of Hoa Phat Group, filed for an initial public offering (IPO) with the State Securities Commission. The company aims to list on the Ho Chi Minh City Stock Exchange (HoSE) in December under the ticker symbol HPA.
The maximum number of shares offered is 30 million, equivalent to 11.7% of the charter capital. The offering price will not be lower than the book value per share, which is over 11,887 dong. Billionaire Tran Dinh Long's subsidiary plans to use the proceeds to invest in farms, animal feed factories, and boost working capital for business operations.
Hoa Phat follows a trend of companies seeking to list their subsidiaries, including Gelex, VPBank, and Techcombank. Nguyen Anh Duc, Managing Director of Institutional Brokerage and Investment Advisory at SBB Securities (SBBS), suggests that these large corporations may be seeking external capital rather than further direct investment in their subsidiaries.
Favorable market conditions also contribute to this trend, according to Tran Quoc Toan, Director of Branch 2 at Mirae Asset Securities. Year-to-date, the VN-Index, Vietnam's benchmark stock index, has increased by 33%, closing at 1,685 points on 15/9. Market liquidity since early August has reached over 39,000 billion dong per session, equivalent to 1.5 billion USD.
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Hoa Phat Agricultural's animal feed production line. Photo: Hoa Phat |
Hoa Phat Agricultural's animal feed production line. Photo: Hoa Phat
Founded in 1992, Hoa Phat is the largest steel producer in Vietnam and Southeast Asia. While operating in logistics, agriculture, and real estate, 90% of the group's revenue still comes from steel.
Hoa Phat Agricultural was established in 2016, with Hoa Phat Group holding a 99.99% stake. The company produces animal feed, raises cattle, pigs, and poultry, and leads the northern market share for eggs with a daily output of 1 million.
According to Hoa Phat's 2024 annual report, the agricultural segment generated 7,081 billion dong in revenue, a 12% increase compared to 2023. Pre-tax profit reached 1,038 billion dong, 5 times higher than the same period last year.
Compared to listed peers, Hoa Phat Agricultural's profit trails only Dabaco, surpassing major names like BAF Agriculture, Hoang Anh Gia Lai, and Masan MeatLife.
In the first half of this year, the company recorded 4,325 billion dong in revenue. After-tax profit reached 939 billion dong, more than double last year's figure.
Trong Hieu
