Siba Group (SBG) Sets September ESOP Issuance of 2M Shares

Overview

Siba Group (SBG), listed on HOSE, has announced an employee stock ownership plan (ESOP) issuance of 2 million shares in September 2026. The issuance includes 1 million bonus shares and 1 million shares sold at 10,000 VND each, raising VND 10 billion for working capital. This move comes as the company reports a sharp revenue decline but improved profitability in the first half of 2026.

Key Facts

• Siba Group will issue a total of 2 million ESOP shares in September 2026.
• 1 million shares will be issued as bonus shares to employees at no cost, funded from retained earnings per the audited 2025 financial statements.
• 1 million shares will be sold at 10,000 VND per share, raising VND 10 billion (approximately USD 0.4 million) for working capital.
• The subscription period runs from September 7, 2026, to September 25, 2026.
• All 2 million shares are subject to a one-year transfer restriction.
• 88 employees are eligible, including CEO Nguyễn Văn Đức, who will receive/purchase the most at 80,000 shares.
• H1 2026 net revenue fell 60% year-on-year to VND 438 billion, but net profit doubled to VND 33 billion.

What Happened

Siba Group, officially CTCP Tập đoàn Cơ khí Công nghệ cao Siba, announced the ESOP issuance via a company notice. The plan, approved by shareholders in July 2026 through written consent, involves two components: a bonus share issuance and a paid issuance. The bonus shares will be distributed from retained earnings as per the audited 2025 financial report, while the paid shares will be offered at VND 10,000 each. The company expects to collect VND 10 billion, which will be used to supplement working capital.

The list of 88 eligible employees was disclosed in a resolution dated August 11, 2026, including board members and supervisory board members. CEO Nguyễn Văn Đức is set to receive the largest allocation of 80,000 shares. The entire ESOP block is subject to a one-year lock-up period, and the bonus shares cannot be transferred.

Market Context

SBG shares closed at VND 14,150 on September 2, 2026. The company, operating in the industrial machinery sector on HOSE, has faced a challenging operating environment, with H1 2026 revenue dropping 60% to VND 438 billion. However, gross profit rose 80% to VND 106 billion due to a 68% reduction in cost of goods sold, and net profit doubled to VND 33 billion. Total assets stood at over VND 1,703 billion as of June 30, 2026, up nearly 10% from the start of the year. The completion of the SIBA Bà Rịa Vũng Tàu high-tech machinery plant, which was transferred from construction in progress, contributed to a significant drop in capital construction costs.

Strategic Significance

The ESOP issuance is designed to align employee interests with shareholder value, particularly for key management personnel. The modest size of the raise (VND 10 billion) suggests it is more about retention and motivation than capital infusion. The company’s strategic focus appears to be on operational efficiency, as evidenced by the sharp cost reduction and improved margins despite lower revenue. The completion of the new plant may position SBG for future growth, but the revenue decline warrants close monitoring. The lock-up period and non-transferability of bonus shares indicate a long-term commitment from employees.

What to Watch

• Q3 2026 earnings results to see if revenue decline stabilizes or reverses.
• Utilization and order intake from the new SIBA Bà Rịa Vũng Tàu plant.
• Any further ESOP or capital-raising plans in the next 12 months.
• Changes in working capital and cash flow following the VND 10 billion injection.
• Compliance with the one-year transfer restriction and any insider trading activity.