BAF Vietnam Plans 20% Stock Dividend and Bonus Issue of Over 60 Million Shares

Overview

Baf Vietnam (BAF, HOSE) has approved a plan to issue over 60.8 million shares to pay dividends and bonuses to shareholders, representing a total ratio of 20%. The issuance, expected in Q2-Q3/2026, will increase charter capital from VND 3,040 billion to VND 3,648 billion. Separately, the company secured a $50 million credit line from FMO (Dutch Entrepreneurial Development Bank) for two large-scale high-tech pig farming projects in Gia Lai.

Key Facts

• BAF will issue 30.4 million shares as a 10:1 stock dividend (10 rights entitle 1 new share), sourced from retained earnings after tax for FY2025.
• Another 30.4 million shares will be issued as a 10:1 bonus share, sourced from share premium.
• Total issuance value at par is VND 608 billion (VND 304 billion each for dividend and bonus).
• Record date for both issuances will be the same day, with execution in Q2-Q3/2026.
• Charter capital will rise from VND 3,040 billion to VND 3,648 billion post-issuance.
• BAF secured a $50 million credit facility from FMO, guaranteed by its equity in Siba Holdings, Hung Phat Farm, and Thanh Dat CNC Livestock Gia Lai.
• The FMO funds will finance two projects: Thanh Dat Farm (5,000 sows, 60,000 fattening pigs, 150,000 commercial pigs/year) and Hung Phat Farm 1 (same scale).
• Q1/2026 net revenue reached VND 1,762 billion (+57% YoY), net profit VND 206 billion (+54% YoY), with pig output of nearly 240,000 head (+50% YoY).

What Happened

Baf Vietnam’s board approved a dual share issuance plan to reward shareholders: a 10:1 stock dividend and a 10:1 bonus issue, totaling over 60.8 million shares. The dividend will be paid from FY2025 audited retained earnings, while the bonus shares come from share premium. Both tranches are scheduled for Q2-Q3/2026 with a single record date.

In a parallel development, BAF announced a $50 million credit facility from FMO, backed by its stakes in three subsidiaries. The funds are earmarked for two high-tech pig farms in Gia Lai province, each with capacity for 5,000 sows, 60,000 fattening pigs, and 150,000 commercial pigs annually. The company’s Q1/2026 results showed strong growth, with revenue and profit rising over 54%.

Market Context

BAF shares closed at VND 34,700 on May 29, 2026, up 0.14% with volume of 880,800 shares. The stock has been supported by the company’s expansion in the pork value chain, a sector benefiting from stable domestic demand and rising protein consumption. BAF’s focus on high-tech, biosecure farming aligns with government priorities for modernizing agriculture. The dual issuance will dilute existing shares by 20%, but the capital increase signals confidence in future earnings.

Strategic Significance

The share issuance and FMO credit underscore BAF’s aggressive growth strategy in Vietnam’s pork industry. By increasing charter capital and securing long-term foreign debt, BAF is funding capacity expansion without straining cash flow. The Gia Lai projects will add significant sow and fattening capacity, potentially boosting output by over 300,000 commercial pigs annually. The FMO involvement also provides credibility for environmental and social governance standards, which may attract ESG-focused investors.

What to Watch

• Execution timeline for the share issuance and record date announcement.
• Progress of the Gia Lai farm projects and any construction milestones.
• Q2/2026 earnings release to assess margin trends and pig price dynamics.
• Any additional foreign debt or equity raisings to fund further expansion.
• Changes in foreign ownership limits given the increased share count.