HPA Disburses VND 1,207B IPO Proceeds as Shares Trade 34% Below Offer

Overview

CTCP Phát triển Nông nghiệp Hòa Phát (HOSE: HPA), the agriculture arm of Trần Đình Long’s Hòa Phát Group, reported on 5 November that it has fully disbursed the VND 1,207B in net proceeds from its January 2026 IPO. The capital went almost entirely to subsidiaries for debt repayment, supplier settlement and working capital, and the stock now trades 34% below its offer price.

Key Facts

• HPA sold 30 million shares at VND 41,900 each, grossing VND 1,257B; after more than VND 50B in issuance costs, net proceeds were nearly VND 1,207B.
• The IPO closed on 6 January 2026 and lifted charter capital from VND 2,550B to VND 2,850B.
• VND 1,000B, or about 83% of net proceeds, was contributed to CTCP Phát triển Chăn nuôi Hòa Phát.
• Within that, VND 800B increased charter capital at Công ty TNHH Chăn nuôi Hòa Phước; VND 192B repaid loans to Công ty TNHH Chăn nuôi Sơn Động; VND 77B repaid Vietcombank Thành Công branch; VND 530B paid suppliers.
• A further VND 200B funded working capital at Hòa Phước for feed, breeding pigs, veterinary medicine and barn leases.
• VND 157B went to Công ty TNHH Thương mại Hòa Phát, including VND 100B to Chăn nuôi Đồng Phát (VND 70B Vietcombank debt, VND 30B cattle purchases) and VND 57B to Chăn nuôi Việt Hùng.
• VND 50B was contributed to Gia cầm Hòa Phát Phú Thọ, covering VND 19B owed to Hòa Phát Group, VND 9.4B to VietinBank Hà Nội and VND 21.6B for feed.
• Roughly VND 387.7B of the total was applied directly to loan repayment; HPA closed at VND 27,550 on 5 November.

What Happened

In a capital-use progress report dated 5 November, HPA stated that disbursement of the full VND 1,207B net IPO proceeds was complete as of 3 November 2026. The largest single allocation, VND 1,000B, was injected into CTCP Phát triển Chăn nuôi Hòa Phát, the intermediate holding entity for the group’s livestock operations. From that pool, VND 800B was used to raise charter capital at Chăn nuôi Hòa Phước, VND 192B repaid debt owed to Chăn nuôi Sơn Động, VND 77B cleared a Vietcombank Thành Công branch loan and VND 530B settled supplier invoices. The remaining VND 200B at Hòa Phước was earmarked for working capital: feed, breeding stock, veterinary inputs and barn rental.

Smaller tranches followed the same pattern. Công ty TNHH Thương mại Hòa Phát received nearly VND 157B, of which VND 100B passed to Chăn nuôi Đồng Phát to repay VND 70B of Vietcombank debt and pay VND 30B for cattle, while VND 57B capitalised Chăn nuôi Việt Hùng for cattle purchase contracts. A final VND 50B went to Gia cầm Hòa Phát Phú Thọ, covering VND 19B owed to Hòa Phát Group, VND 9.4B to VietinBank Hà Nội and VND 21.6B for feed. The report does not disclose the IPO’s allocation to individual projects beyond these subsidiary-level transfers.

Market Context

HPA listed on HOSE following the January 2026 offering and has since lost roughly a third of its value; at VND 27,550 on 5 November it sits 34% below the VND 41,900 IPO price. Parent Hòa Phát Group (HOSE: HPG) closed at VND 21,500 the same session. The disbursement report lands as Vietnamese investors scrutinise post-IPO capital deployment among newly listed consumer-staples and agriculture names, a sector where feed costs, African swine fever risk and livestock cycle timing drive earnings visibility.

Strategic Significance

The disclosure confirms that HPA’s IPO functioned less as growth capital for new capacity than as balance-sheet repair across a fragmented subsidiary structure. Roughly VND 387.7B went directly to loan repayment, with the balance absorbed by supplier payables and working capital, meaning the listing chiefly de-levers the livestock entities and consolidates ownership through charter-capital increases at Hòa Phước and Việt Hùng. For long-term holders, the thesis now rests on whether a cleaner balance sheet and lower interest burden translate into margin recovery in pigs, cattle and poultry, rather than on incremental volume from the proceeds themselves. The reliance on Hòa Phát Group and Vietcombank credit lines before the IPO also illustrates how dependent the agriculture arm remains on the parent’s funding architecture.

What to Watch

• HPA’s first post-IPO annual and quarterly filings showing interest expense and debt levels at Hòa Phước, Sơn Động and Đồng Phát after repayment.
• Live-weight pig and cattle price trends in Vietnam, which determine whether the VND 530B supplier settlement reflects volume growth or cost inflation.
• Any further related-party lending from Hòa Phát Group (HPG) to HPA subsidiaries, disclosed in related-party transaction notes.
• Charter-capital registration updates at Chăn nuôi Hòa Phước and Chăn nuôi Việt Hùng following the VND 800B and VND 57B injections.
• Shareholder structure and free-float filings as the IPO lock-up periods lapse through 2026.