FDC Stock Hits Ceiling After Plan to Mortgage Can Gio Project, Raise Capital 7.7x

Overview

FDC (Fideco), a Ho Chi Minh City-based real estate company currently under warning status, saw its shares hit the ceiling price on May 14, 2026, after announcing plans to mortgage its VND 4,300 billion Can Gio high-end residential project at Sacombank and a massive capital increase of over 261 million shares, which would expand charter capital 7.7 times. The moves aim to secure funding for the Can Gio project and a new urban development in Dong Anh, Hanoi.

Key Facts

• FDC shares rose 6.83% to VND 21,900 on May 14, 2026, with a trading volume of 30,400 shares.
• The board approved using land use rights, investment value, and future rights of the Can Gio high-end residential project as collateral for loans or guarantees at Sacombank.
• The Can Gio project has a total approved investment of over VND 4,300 billion, covering 29.8 hectares, located about 1 km from the Can Gio coast.
• The project is a 50:50 joint venture with Gelex Infrastructure Joint Stock Company (Gelex Infra), expected to serve about 4,000 residents with villas and townhouses up to 5 floors.
• FDC plans to issue over 261 million shares to raise charter capital from VND 386 billion to VND 3,000 billion (7.7 times increase).
• The capital raise includes a rights offering of 38.6 million shares at VND 10,000/share (48% discount to market) to raise VND 386 billion, and a private placement of 222.7 million shares to professional investors to raise VND 2,227 billion.
• Proceeds of VND 614 billion will go to the Can Gio project and VND 1,600 billion to a new urban area project in Dong Anh, Hanoi (joint venture with New Pacific).
• In Q1 2026, FDC reported revenue of over VND 18 billion and net profit of nearly VND 7 billion, down 4% and 38% year-on-year respectively.

What Happened

On May 14, 2026, FDC shares surged to the ceiling price after the company’s board of directors announced two key capital-raising initiatives. First, the board resolved to mortgage the entire Can Gio high-end residential project—including land use rights, investment value, and all future rights—at Sacombank to secure loans or guarantees for third parties. The project, with a total approved investment of over VND 4,300 billion, is a 50:50 joint venture with Gelex Infra and is planned to accommodate about 4,000 residents.

Second, FDC approved a massive capital increase plan involving the issuance of over 261 million shares, which would raise charter capital from VND 386 billion to VND 3,000 billion. The plan comprises a rights offering to existing shareholders at a 48% discount to the market price and a private placement to professional investors. The funds will be allocated to the Can Gio project (VND 614 billion) and a new urban area project in Dong Anh, Hanoi (VND 1,600 billion), which is a joint venture with New Pacific. The company aims to complete the 1/500 detailed planning adjustments and environmental procedures this year to prepare for the next development phase.

Market Context

FDC, listed on HOSE, has been under a warning status due to its financial performance. The stock’s 6.83% surge to VND 21,900 on May 14 came on relatively low volume of 30,400 shares, suggesting the move was driven by the news rather than broad buying. The company’s Q1 2026 results showed a decline in both revenue and net profit, reflecting ongoing operational challenges. The broader real estate sector in Vietnam has been recovering slowly, with developers seeking alternative funding sources amid tight credit conditions.

Strategic Significance

The dual capital-raising strategy—mortgaging the Can Gio project and a massive equity issuance—signals FDC’s aggressive push to fund its two major projects despite its weak financial position. The rights offering at a steep discount may dilute existing shareholders significantly, but the private placement could bring in strategic investors. The success of these plans hinges on shareholder approval and market appetite for the private placement. If executed, the capital increase would transform FDC’s balance sheet, enabling it to develop the Can Gio and Dong Anh projects, which could drive future revenue growth. However, the company’s current warning status and declining earnings pose risks.

What to Watch

• Shareholder approval for the capital increase plan at the upcoming general meeting.
• Completion of the 1/500 detailed planning and environmental procedures for the Can Gio project.
• Progress on the private placement and identification of professional investors.
• Q2 2026 earnings release to assess whether the revenue decline continues.
• Any regulatory updates on the warning status and potential lifting of restrictions.