Housing developer Novaland to list, but no IPO

Novaland Groups plans to list its shares on the HCM Stock Exchange in December.-Photo icon56apartment.com

Phan Le Hoa, the company's capital market and investment relations director, said documents would be submitted to the HCM Stock Exchange in November and the listing would take place in December.

A private placement of shares would be done by selling to large, prestigious investors, he said.

"After the listing, we predict there will be a free float of 20-25 per cent of the shares."

He said foreign investors would buy 70-80 per cent of the private placement and banks and securities companies, the rest.

While he refused to divulge the price, he said the company aims to be among the top 30 companies in terms of market capitalisation.

The money raised through the private placement will be used to fund ongoing and new projects and retire some debts.

Novaland is one of the biggest property developers in the country with around 40 projects in HCM City.

Last year the company sold nearly 6,700 apartments and office-tel units.

In the first half of this year it has brought into the market 3,800 units.

This year, besides apartments, Novaland has also been building villas and street houses.

Hoa revealed that his company has enough land for developing housing for the next five years.