Plan to go public in the next 3 years
Speaking to VietNamNet on June 28, Mr. Nguyen Hung Minh - Vice Chairman of the Board of Directors of Truong Hai Group (Thaco Group) said that Thaco and its consulting unit, Ho Chi Minh City Securities Corporation (HSC), are working to sell 10% of Thaco Auto's shares.
Previously, Reuters sources said that Thaco (owned by billionaire Tran Ba Duong) could sell 20% of Thaco Auto's shares. And Thaco Auto's valuation could reach about 5 billion USD. Also on Reuters, the proceeds from the deal will be used by Thaco Group to invest in real estate projects.
However, Mr. Nguyen Hung Minh said, Thaco is working with investors on a plan to issue new shares to strategic investors of up to 10% of Thaco Auto's shares.
According to Mr. Minh, along with that, the number of ESOP shareholders in 2018 (shares under the preferential program) of Thaco will be converted to make Thaco Auto a public joint stock company and has a plan to list on the stock market within the next 3 years.
Mr. Minh said that the capital raised from this new share issuance will be used to serve production and business activities and invest in expanding the retail system and developing new products of Thaco Auto in the coming time.
Responding to information from a foreign newspaper that Thaco has a factory in Hung Yen, Mr. Minh said that the information is incorrect because all of Thaco Auto's car production activities are only done at Chu Lai Industrial Park - Quang Nam, and there is no production elsewhere.
According to Mr. Minh, domestic and foreign investors are currently researching and working with Thaco to negotiate. This new share issuance is expected to be completed this year.
Thaco Group is known as a multi-industry corporation with fields including automobiles, agriculture, mechanics and supporting industries, construction investment, logistics and trade services.
Thaco Auto is a member of Thaco Group and also the main unit. Thaco Auto specializes in manufacturing, assembling, distributing and retailing vehicles under the brands KIA, Mazda, Peugeot, BMW... with a system of nearly 400 retail showrooms nationwide and a production complex with 7 factories (KIA, Thaco Royal, Mazda, Luxury Car factory, motorcycle factory, bus factory, truck and specialized truck factory) located in Chu Lai Industrial Park (Quang Nam).
In 2023, Thaco Auto aims to sell over 120,000 vehicles, including 96,000 passenger cars, 23,500 trucks, 1,500 buses and mini buses. Revenue is expected to reach over VND90,000 billion, of which VND5,200 billion will come from services. In 2022, the company will sell 111,440 vehicles to the market.
In 2023, Thaco Auto will continue to research and develop electric vehicles; invest in upgrading production technology for assembly plants towards automation...
Great ambition
Truong Hai Group is known as a private enterprise of Mr. Tran Ba Duong and Ms. Vien Dieu Hoa's family. This enterprise is no longer a public company and does not have to disclose information.
Over the past decade, Thaco has expanded into many fields, including agriculture, real estate, retail, logistics, etc.
In 2023, billionaire Tran Ba Duong's group continues to set big ambitions.
In the real estate sector, Thadico - Dai Quang Minh will accelerate the deployment of available land funds, expected to start dozens of commercial projects, with a total investment of thousands of billions of VND in 2023. Previously, Thaco Group has delegated management and responsibility to Dai Quang Minh Real Estate Investment Joint Stock Company (Thadico) to manage and be in charge of investment and development activities of industrial park, urban area, real estate and transportation, and technical infrastructure projects. Thadico will start 24 projects and complete the handover of 3 projects in 2023, with a total investment value disbursed in the year of 6,731 billion VND.
In 2022, Thaco recorded a profit of VND7,400 billion but its debt was high, more than VND104 trillion (USD4.4 billion).
At the end of last year, Thaco recorded equity of VND48,445 billion. Thaco recorded outstanding bonds on the company's equity of 0.17 times. This means Thaco has about VND8,200 billion in outstanding bonds.
According to HNX, Thaco is circulating a batch of bonds worth a total of VND6,200 billion, maturing in December 2024, December 2025 and September 2026, respectively.
Profits in 2022 increased sharply, thereby helping the group's return on equity (ROE) improve from 11.3% to 15.3%.
According to the list of world USD billionaires in 2023 published by Forbes Magazine (USA) in early April 2023, Vietnam has 6 representatives. Vietnamese billionaires have assets worth 12.6 billion USD, "evaporating" 8.6 billion USD compared to 2022. However, the assets of Thaco Chairman Tran Ba Duong's family remained unchanged, at 1.5 billion USD.
Mr. Tran Ba Duong is famous for the Sala real estate project in Thu Thiem (HCMC). Mr. Duong's Dai Quang Minh enterprise once recorded large revenue from this project.
Mr. Tran Ba Duong had a resounding success with Thaco and made a breakthrough by turning the swampy Thu Thiem area into the model urban area Sala. However, this billionaire had a difficult time rescuing HAGL Agrico.
HAGL Agrico (HNG) is an agricultural enterprise with a large land area but modest revenue and profit. High prices of fertilizers and agricultural materials and soaring transportation costs over the past year have made it difficult for agricultural enterprises like HNG.
Mr. Tran Ba Duong's Thaco poured billions of USD into HAGL Agrico, but the company's recovery was quite slow. Previously, at the extraordinary shareholders' meeting in early 2021, Mr. Tran Ba Duong said that he joined HAGL Agrico only to help the company escape danger and wanted the country to have a large-scale agricultural enterprise following the industrial production model.
Thaco once invested in Hung Vuong Seafood and it was also unsuccessful. HVG's business was so bad that this stock was delisted from the HOSE.
On May 15, 2023, HAGL Agrico signed the handover of Nong Khang airport in Houaphan province (Laos).
The total investment of the project is 82 million USD, the source of funding for the project construction is Hoang Anh Gia Lai Joint Stock Company (HAGL) signed a contract to lend to the Lao Government, represented by the Lao Ministry of Finance. By December 2019, the project changed the lending entity from HAGL to International Agricultural Joint Stock Company (HAGL Agrico).
In 2021, Thaco Group took over and operated HAGL Agrico Company, and Thaco also took over the Nong Khang airport project to continue to accelerate the handover progress.
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