Bau Duc's agricultural company officially launches IPO

Bảo Chương |

Hoang Anh Gia Lai International Investment JSC, considered Bau Duc's "ace card", is expected to IPO 18.8 million HGI shares at a price of 60,600 VND/share.

On the afternoon of August 18, Hoang Anh Gia Lai (HAGL, code: HAG) organized a Roadshow on HGI shares of Hoang Anh Gia Lai International Investment Joint Stock Company. Accordingly, it is expected to initially offer 18.8 million HGI shares to the public (IPO) at a price of 60,600 VND/share, thereby mobilizing a maximum of 1,139 billion VND.

Investors are allowed to register to buy at least 100 shares and a maximum of 9.36 million shares, equivalent to 4.997% of HGI's charter capital after the offering. The number of shares registered to buy must be a multiple of 100. Shares will be distributed through a designated agent, OCBS Securities Joint Stock Company.

The registration period for purchase lasts from August 18, 2026 to 5:00 PM on September 7, 2026. Investors when registering to buy must deposit an amount equivalent to 10% of the total value of registered shares. After the IPO, HGI is expected to register for stock trading on UPCoM in the third - fourth quarters of 2026.

At the Roadshow, many investors questioned whether the offering price of 60,600 VND/share would be reasonable if HGI traded on UPCoM, the price fluctuation range on the first trading day was 40%, causing the enterprise valuation to be equivalent to 2-3 times the book value.

According to Mr. Doan Nguyen Duc, Chairman of the Board of Directors of Hoang Anh Gia Lai JSC, the stock price is not a factor that businesses can decide for themselves. He said that the price of 60,600 VND/share was formed through a relatively long process, with the participation of valuation and consulting companies.

However, the Chairman of HAGL believes that investors can look at the commitments on dividends and profits of the enterprise. He informed that HGI plans to pay 50% cash dividends continuously in the next three years. In addition, the enterprise sets a target of after-tax profit not less than charter capital, and this year sets a profit target of no less than 1,688 billion VND.

One of the bases for Mr. Duc's expectations for HGI's prospects is that the area of crops is continuing to be expanded and put into operation, instead of completely depending on agricultural product price fluctuations. He said that currently only about 40% of the area is put into operation and the remaining area is expected to be put into operation in the period 2027 - 2029.

In addition to the plan to pay cash dividends, Mr. Duc also revealed the possibility that HGI will pay dividends in shares after completing the IPO.

HGI currently plays a direct role in managing and operating Hoang Anh Gia Lai's key agricultural growing areas in Laos, with a total scale of more than 7,000ha.

According to the announced plan, the enterprise currently has 2,365ha of bananas, 1,713ha of durian and 2,464ha of coffee. By 2028, HGI plans to maintain 2,365ha of bananas. For durian, the enterprise sets a target of reaching 1,771ha, and at the same time invests in a durian freezing factory and cold storage in Laos.

Notably, coffee will be the crop that HGI prioritizes expanding most strongly. The enterprise aims to increase the area to 6,323ha by 2028, an increase of more than 3,800ha, and at the same time build 2 large-scale wet coffee processing plants in Laos.

Bảo Chương
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