SJ Group plans capital raise to over VND 5.2 trillion

Overview

SJ Group (SJS) has announced a plan to increase its charter capital to over VND 5,272 billion through a combination of a 10% stock dividend and a rights issue of 200 million shares. The move aims to raise VND 2,000 billion for infrastructure works at the Van La - Van Khe housing project. The plan is set for 2026, pending regulatory approval.

Key Facts

• SJ Group plans to issue over 29.7 million bonus shares for 2025 dividends, at a ratio of 100:10 (10% stock dividend).
• The total value of the bonus share issuance is nearly VND 297.5 billion, sourced from retained earnings.
• The company will offer 200 million shares to existing shareholders at VND 10,000 per share, with a rights ratio of 100:67.23.
• Proceeds from the rights issue are expected to be VND 2,000 billion, allocated to infrastructure and architectural works at the Van La - Van Khe project.
• Both issuances are planned for 2026, subject to approval from the State Securities Commission of Vietnam (SSC).
• If successful, charter capital will rise from nearly VND 2,975 billion to over VND 5,272 billion.
• National Securities Company (NSI) has registered to sell 2 million SJS shares from July 27 to August 25, 2026, reducing its stake from 1.84% to 1.17%.

What Happened

SJ Group’s board of directors has approved a plan to raise charter capital through a combination of a stock dividend and a rights issue. The company will issue over 29.7 million shares as a 10% stock dividend for 2025, funded by audited retained earnings. Additionally, it will offer 200 million shares to existing shareholders at VND 10,000 per share, with a ratio of 100:67.23. The rights issue is expected to raise VND 2,000 billion, which will be used for infrastructure and architectural works at the Van La - Van Khe residential project.

The plan is scheduled for 2026, pending approval from the SSC. The company will also handle fractional shares by rounding down and distributing them to other investors as decided by the board. In a separate development, NSI, a related party, has registered to sell 2 million SJS shares, reducing its stake from 1.84% to 1.17%.

Market Context

SJS shares closed at VND 47,500 on August 22, 2026, on the HOSE. The capital raise comes as the real estate sector in Vietnam shows signs of recovery, with developers seeking funding for project development. The rights issue at VND 10,000 per share represents a significant discount to the current market price, which may attract investor interest. However, the planned sale by NSI could add supply pressure in the near term.

Strategic Significance

The capital increase is a strategic move to fund the Van La - Van Khe project, which is a key development for SJ Group. By raising VND 2,000 billion, the company aims to accelerate infrastructure works, potentially enhancing the project’s value and future revenue streams. The stock dividend rewards existing shareholders while the rights issue provides an opportunity to increase stakes at a discounted price. The involvement of NSI, with its board member also chairing SJ Group, highlights potential synergies but also raises governance considerations.

What to Watch

• Approval from the SSC for the share issuance plan.
• Timeline for the rights issue and stock dividend execution in 2026.
• Progress of the Van La - Van Khe project and its impact on earnings.
• NSI’s share sale completion and its effect on SJS’s share price.
• Quarterly financial results to assess the company’s ability to fund the project.