MWG Leaders to Buy Dien May Xanh IPO Shares at 80,000 VND Each

Overview

Mobile World Group (MWG) Chairman Nguyen Duc Tai and other senior executives will participate in the initial public offering (IPO) of its subsidiary Dien May Xanh (DMX), which plans to sell nearly 180 million shares at 80,000 VND each, raising approximately 14,360 billion VND. DMX targets 2026 net profit of 7,350 billion VND, and reported strong Q1 2025 results with revenue and profit up 30% and 49% year-on-year. The IPO is one of the largest in Vietnam in recent years and will see DMX list on HOSE in early August 2025.

Key Facts

• DMX plans to sell nearly 180 million shares at 80,000 VND per share, raising about 14,360 billion VND (USD 574.4 million).
• The offering represents approximately 15% of DMX’s post-issue charter capital, with 1% for ESOP and 14% for external investors.
• DMX’s post-IPO charter capital will increase from 11,013 billion VND to 12,808 billion VND, implying a market capitalization of over 102,460 billion VND (USD 4.1 billion).
• DMX targets 2026 net profit of 7,350 billion VND, implying a forward P/E of about 12x.
• In Q1 2025, DMX’s revenue and after-tax profit rose 30% and 49% year-on-year, respectively.
• MWG Chairman Nguyen Duc Tai will use personal funds to buy DMX shares, while CEO Doan Van Hieu Em plans to sell some MWG shares to fund his purchase.
• The subscription period opened on May 27, 2025, and listing is expected in early August 2025.

What Happened

At an investor meeting in Ho Chi Minh City on May 28, 2025, DMX General Director Doan Van Hieu Em disclosed that MWG leadership, including Chairman Nguyen Duc Tai, will participate in DMX’s IPO. The move is intended to demonstrate confidence in DMX’s growth prospects post-listing. However, some shareholders questioned whether executives selling MWG shares to buy DMX reflects a shift in priority toward the subsidiary.

Hieu Em explained that funding sources vary by individual: Chairman Tai will use entirely personal funds, while Hieu Em himself plans to sell a portion of his MWG holdings but retain a majority stake. Other executives may use personal funds or rebalance existing portfolios. The IPO is one of the largest in Vietnam in five years, with Vietcap Securities acting as the lead advisor and distributor.

Market Context

MWG shares closed at 77,700 VND on May 28, 2025, down 2.88% on volume of 4 million shares, reflecting market uncertainty around the restructuring. MWG trades on HOSE with a market cap of approximately 114,000 billion VND (USD 4.6 billion). The DMX IPO raises concerns about potential double-counting of market capitalization, as DMX’s implied valuation of over 102,000 billion VND is nearly equal to MWG’s current market cap. The restructuring will see MWG operate as a holding company, while DMX becomes an independent entity owning the The Gioi Di Dong, Dien May Xanh, and TopZone chains.

Strategic Significance

The IPO and restructuring mark a pivotal shift for MWG, transitioning from a single operating company to a holding structure. DMX’s standalone listing allows the market to value its core electronics retail business separately, potentially unlocking value if DMX meets its ambitious 2026 profit target. However, the high valuation relative to MWG and the risk of capital reallocation from parent to subsidiary may create near-term uncertainty. The success of the IPO and DMX’s post-listing performance will test whether the spin-off strategy benefits long-term shareholders.

What to Watch

• DMX’s IPO subscription results and final allocation, expected by end of June 2025.
• DMX’s listing date on HOSE, targeted for early August 2025.
• MWG’s Q2 2025 earnings report, due in July 2025, to assess impact of restructuring on parent company margins.
• Any further disclosure of executive share sales in MWG to fund DMX purchases.
• DMX’s ability to achieve its 2026 profit target of 7,350 billion VND, with interim milestones in 2025.