SJ Group (SJS) Plans VND2,000B Rights Issue for Van La Project

Overview

SJ Group (SJS), the HOSE-listed developer behind the Nam An Khánh new urban area, has approved a 200 million share rights offering at VND10,000 per share to raise VND2,000 billion (about USD 80 million) for the Văn La residential project in Hà Nội. The board also raised the equity share of the project’s capital structure to roughly 95%, reducing dependence on bank borrowing as credit for real estate tightens.

Key Facts

• Rights offering of 200 million shares to existing shareholders at VND10,000 per share, targeting VND2,000 billion.
• Exercise ratio of 100:67.23 (100 shares held entitles the holder to subscribe for 67.23 new shares).
• The Văn La project carries a total approved investment of VND2,795 billion, of which VND2,655 billion (about 95%) is equity and VND140 billion (about 5%) is debt and other lawful funding.
• Proceeds allocation: roughly VND1,338 billion for high-rise apartments, over VND456 billion for townhouses and villas, and about VND205 billion for technical infrastructure.
• The VND2,000 billion target equals about 75% of the equity earmarked for the project under the revised structure.
• The Vista Văn La spans more than 12 hectares, comprising 832 apartments in two towers, 215 low-rise units and a 12-storey office and services building.
• As of 30 September 2026, SJ Group recorded over VND708 billion of work-in-progress costs at The Vista Văn La and nearly VND142 billion of construction-in-progress tied to the project’s leasable commercial area.

What Happened

In a board resolution dated 20 October, SJ Group adjusted the funding structure of the Văn La housing project, citing shifts in unit investment costs that changed the project’s actual capital needs. The board said it raised the equity proportion to safeguard the project’s financial capacity and to reduce interest expense, noting that access to credit for real-estate business activity is narrowing. The company also added contingency measures should the offering fall short of target, including bank loans, bringing in project-level equity investors, bond issuance or other lawful sources.

The rights offering was approved separately and precedes the capital-structure adjustment. SJ Group said all proceeds will fund construction of technical infrastructure and works within The Vista Văn La, located on the Quang Trung axis near Văn Khê station on the Cát Linh – Hà Đông urban rail line. The company is updating its share-offering registration file, adding third-quarter 2026 financial statements and revising the prospectus. The filing does not disclose a timetable for the offering or the expected completion date.

Market Context

SJS trades on HOSE and closed at VND55,100 on 21 October 2026, roughly 5.5 times the VND10,000 subscription price. That gap is the central near-term variable for the stock: a deeply discounted rights issue typically pressures the market price toward the theoretical ex-rights level as the record date approaches. The move lands in a Vietnamese real-estate sector where developers have leaned on equity and bond channels as bank credit for the segment stays constrained, and where project-level funding discipline has become a differentiator for investors.

Strategic Significance

The shift to 95% equity is the more consequential signal. By cutting project debt to about 5% of a VND2,795 billion budget, SJ Group removes interest expense from The Vista Văn La’s cost base and insulates the project from tighter real-estate lending, at the cost of dilution for existing holders. The VND708 billion already capitalised as work in progress shows the project is well past planning, so the offering is effectively a construction-financing event rather than a land-banking bet. Execution on the 832 apartments and 215 low-rise units, and the pricing achieved on those sales, will determine whether the equity raised earns an adequate return.

What to Watch

• The record date and offering timetable, once the revised prospectus and Q3 2026 financials are filed.
• Subscription results against the VND2,000 billion target and whether the board activates the bank-loan, bond or project-investor fallbacks.
• The theoretical ex-rights price adjustment and any foreign-ownership cap constraints on the ratio.
• Sales and handover progress at The Vista Văn La, tracked through work-in-progress balances in subsequent quarterly filings.
• Any further revisions to the VND2,795 billion project budget if unit investment costs continue to move.