BIG Group Holdings plans to raise 150.85 billion VND

BIG Group Holdings Investment Joint Stock Company (code: BIG) was established in 2017, initially operating in the field of providing construction materials, trading and leasing machinery and equipment, and repairing machinery and equipment. By 2019, the company began to expand into real estate consulting and brokerage, focusing mainly on office and housing leasing.

After officially listing its shares on the UPCoM exchange from January 2022, BIG Group Holdings continues to demonstrate its ambition to expand its investment in many areas: Real estate and trade, including construction materials and agricultural products (such as durian); finance, through mergers and acquisitions (M&A) to invest in potential businesses, expand the investment ecosystem and increase profitability; technology, focusing on research and implementation of projects on blockchain, artificial intelligence (AI) and big data, serving a comprehensive digital transformation strategy for the commercial real estate sector.

However, the continuous expansion of business has caused the company's cash flow to increasingly be in deficit.

In fact, along with the capital deficit model, BIG Group Holdings' total interest-bearing debt increased by 292.7% in the period from January 1, 2022 to September 30, 2025, equivalent to an increase of VND 119 billion, to VND 159.65 billion, equivalent to 95.8% of total equity. Along with that, short-term receivables and inventories also increased by 224.1%, equivalent to an increase of VND 242.95 billion, reaching VND 351.37 billion, accounting for 53.2% of total assets (while at the beginning of 2022 it only accounted for 30.95%).

It can be seen that expanding scale by increasing debt has helped BIG Group Holdings accelerate investment, but cash flow is concentrated in inventories and short-term receivables - that is, in third parties, instead of being converted into fixed assets or long-term investments directly owned by the enterprise.

In addition to increasing debt, BIG Group Holdings is also looking to raise capital through issuing shares. In October 2024, the Company issued 9.34 million shares privately and recently continued to approve the offering of shares to existing shareholders at a ratio of 100:94.34, corresponding to the offering of 150.85 million shares at a price of VND 10,000/share. The issuance is expected to be implemented in 2025, after being approved by the State Securities Commission. According to the issuance plan, the entire amount of nearly VND 150.85 billion raised will be used to repay bank loans.

As of October 16, BIG shares are trading around VND4,900/share, 51% lower than the offering price to existing shareholders. Since listing and peaking at VND31,280/share on January 18, 2022, the market price has decreased by 84.3% and is still in a downtrend, trading below the long-term support line MA200.

Before trading on the UPCoM floor, BIG Group Holdings had two major shareholders, Mr. Vo Phi Nhat Huy, Chairman of the Board of Directors, owned 41.68% of charter capital; Mr. Vo Phi Nhat Quang, the chairman's younger brother, owned 5% of charter capital; the remaining 53.32% of charter capital belonged to small shareholders (owning less than 5%).

However, as of September 30, 2025, the company recorded 4 major shareholders owning a total of 56.5% of the charter capital, while the remaining 43.5% belonged to small shareholders. Notably, Mr. Nhat Huy reduced his ownership ratio from 41.68% to 17.9%, through many direct stock sales on the stock exchange.

The fact that the stock price continuously fell below par value, while the Chairman of the Board of Directors continuously divested ownership, has negatively impacted the psychology and expectations of investors, especially when the enterprise, despite expanding investment, still maintains a model of cash flow deficit, ballooning debt and having to issue shares to repay bank loans.

In fact, the market price of the shares is significantly lower than the issue price (VND 10,000/share), which makes many investors worried. Because if they buy on the stock exchange, they can own shares at a cheaper price, instead of having to pay money to the company and then wait 3-4 months to complete the depository and additional listing after the issue.

Normally, businesses offering to existing shareholders set prices lower than the market to encourage participation. For example: DIC Corp (code DIG) is offering 150 million shares at VND12,000, lower than the trading price of VND24,600/share; PV Power (code POW) plans to issue 281.02 million shares at VND10,000, lower than the market price of VND14,350/share (October 16); Becamex IJC (code IJC) offers 251.83 million shares at VND10,000, while the market price is VND13,750/share.

On the contrary, the case of BIG Group Holdings is against the trend, when the offering price is much higher than the transaction price, meaning that existing shareholders have to "buy expensively" to help the business have money to pay off bank loans, which increases risks and reduces investor confidence.

Source: https://baodautu.vn/big-group-holdings-len-ke-hoach-huy-dong-15085-ty-dong-d420808.html