Novaland (NVL) suddenly asked shareholders to change its plan to offer more than 2.9 billion shares

On November 30, No Va Real Estate Investment Group Joint Stock Company (Novaland – code NVL) will finalize the list of shareholders to get opinions on adjusting the plan to issue individual shares and shares to shareholders. existing, the employee stock issuance plan (ESOP) was previously approved. However, the specific change plan has not been announced by the group.

Previously, in March 2023, Novaland shareholders approved a plan to issue more than 975 million individual shares at a price not lower than 10,000 VND/share to strategic investors and professional securities investors. The amount of money earned if 100% of the shares are successfully offered is not less than 9,750 billion VND.

The purpose of issuance is to invest additional capital in subsidiaries to restructure debt and pay due debts; implementing projects in which the subsidiary is the investor; Payment of taxes and payables to the State of subsidiaries and supplementation of working capital.

At the same time, Novaland also plans to offer an additional 1.95 billion shares to existing shareholders, corresponding to an implementation ratio of 1:1 (shareholders who own 1 share will have the right to buy 1 new share). ), selling price is not lower than 10,000 VND/share. Novaland can earn 19,500 billion VND if it successfully offers 100% of the plan.

The amount of money collected is used to restructure debt and pay due debts, and pay salary costs for employees; Payment of general operating costs and implementation of projects invested by Novaland. The implementation time for the above two options is in 2023 or according to the decision of the Board of Directors after being granted a certificate of registration to offer additional shares to the public by the State Securities Commission.

In addition, Novaland also plans to issue shares under the 2023 employee option program (ESOP), with a maximum amount of 1.5% of the Company’s outstanding shares at the time of issuance at a price not less than 10,000 VND/share. Offering subjects include members of the Board of Directors and employees according to the list approved by the Board of Directors. Implementation time is until the end of 2024 or another deadline as decided by the Board of Directors.

Novaland’s move took place in the context that major shareholders related to Chairman Bui Thanh Nhon such as NovaGroup and Diamond Properties continuously reduced their ownership due to mortgage sales and proactively sold off shares to support the structure. in debt. Currently, the group of shareholders related to Mr. Nhon still holds a total of less than 43% of capital in Novaland.

In a recent development, NovaGroup registered to sell 26.5 million NVL shares for the purpose of balancing its investment portfolio and supporting debt structure. The transaction is expected to be carried out by order matching and agreement method during the period from November 16 to December 15, 2023. Previously, BIDV Securities (BSC) announced that it would sell a total of 41.7 million NVL shares owned by 2 major shareholders from November 1 until all collateral assets are sold as designated by the owner. bonds.

Regarding business results for the third quarter of 2023, Novaland recorded consolidated revenue of nearly 1,074 billion VND and profit after tax of 137 billion VND, down 67% and 42% respectively compared to the same period last year. This is the first profitable quarter after 2 quarters of heavy losses for this real estate business. In the first 9 months, Novaland recorded a revenue of 2,740 billion VND and a net loss of 958 billion VND.

On the market, NVL shares have increased 25.5% since the beginning of November and are currently at 16,200 VND/share. However, this market price is still about 26% lower than the one-year peak reached in early September. The corresponding market capitalization value reached 31,500 billion VND, only equivalent to about 1/6 of that time. peak period.