Novaland (NVL) Plans Bonus Share Issue to Boost Charter Capital Above VND 24,000B

Overview

Novaland (NVL) has announced a plan to issue nearly 167.6 million bonus shares to existing shareholders, aiming to increase its charter capital from approximately VND 22,345 billion to nearly VND 24,021 billion. The issuance is expected in Q2/2026, subject to regulatory notification. This capital increase follows a strong Q1 2026 performance, where NVL reported a net profit of VND 860 billion, reversing a loss of VND 476 billion in the same period last year.

Key Facts

• Novaland plans to issue 167.6 million bonus shares at a ratio of 40:3 (40 rights entitle the holder to 3 new shares).
• The total issuance value at par is nearly VND 1,676 billion, sourced from share premium on the audited 2025 separate financial statements.
• Charter capital will increase from VND 22,345 billion to VND 24,021 billion if the issuance is completed.
• The issuance is expected in Q2/2026, with specific timing determined by the board after notifying the State Securities Commission (SSC).
• Rights to receive bonus shares are non-transferable, but the new shares themselves are freely transferable.
• Q1/2026 net revenue reached VND 3,587 billion (+102% YoY), driven by real estate transfer revenue of VND 3,452 billion (+111% YoY).
• Q1/2026 net profit was VND 860 billion, compared to a loss of VND 476 billion in Q1/2025.
• For full-year 2026, Novaland targets record net revenue of VND 22,715 billion (3.2x 2025) and net profit of VND 1,852 billion.

What Happened

Novaland’s board approved a plan to issue bonus shares from equity to increase charter capital. The company will issue 167.6 million shares to existing shareholders at a ratio of 40:3, using share premium from the audited 2025 financial statements. The issuance is expected to close in Q2/2026, pending SSC notification. Separately, Novaland will hold a shareholder vote from June 12-22, 2026, to approve adjustments to other share issuance plans for 2026.

The company reported a strong Q1 2026, with net revenue of VND 3,587 billion (+102% YoY) and net profit of VND 860 billion, reversing a year-ago loss. The improvement was driven by a 111% surge in real estate transfer revenue and a 58% increase in financial income, while interest expenses fell 15%.

Market Context

NVL shares closed at VND 15,500 on May 24, 2026, up 1.31% with volume of 13.2 million shares. The stock trades on HOSE. The bonus issue comes as Novaland continues to recover from a prolonged downturn in Vietnam’s real estate sector, which has seen a gradual rebound in 2025-2026. The company’s Q1 results show operational improvement, but the capital increase dilutes existing shareholders by 7.5% (based on the 40:3 ratio).

Strategic Significance

The bonus share issuance strengthens Novaland’s equity base without requiring cash outflows, supporting its ambitious 2026 revenue target of VND 22,715 billion. The move signals management’s confidence in the company’s recovery trajectory, as it leverages retained equity rather than debt. However, the dilution may pressure near-term earnings per share. The capital increase also provides a buffer for future project development, particularly as Novaland works to complete ongoing residential projects and reduce its debt burden.

What to Watch

• SSC notification timeline and actual issuance date in Q2/2026.
• Shareholder vote results (June 12-22, 2026) on additional share issuance plans.
• Q2 2026 earnings report to assess whether revenue and profit momentum continues.
• Progress on debt restructuring and bond repayments, given the company’s history of bond delays.
• Any further capital-raising plans, including potential rights issues or private placements.