Hoa Phat Agriculture IPO: Subscription volume exceeds offering size.

The initial public offering (IPO) of Hoa Phat Agricultural Development Joint Stock Company (HPA) officially closed for subscription and deposit payments at 4:00 PM on December 15th. The total number of shares reserved reached over 35.7 million, exceeding the planned issuance of 30 million shares by 19%.

Over 400 investors together​​   Representatives from funds and securities companies attended the HPA roadshow .

Institutional investors accounted for 57% of the total deposits, with the remainder coming from domestic and foreign individual investors. HPA's IPO attracted participation from 10 institutional investors, including international investment funds and domestic securities companies.

HPA offered shares at VND 41,900 each, corresponding to a 12-month trailing P/E ratio of 6.5 times, lower than the Vietnamese median of 20.9 times. Despite possessing industry-leading net profit margins and ROE, HPA's P/E and EV/EBITDA ratios at the IPO price were considered very attractive, hovering around or below the average of similarly sized livestock and animal feed companies in the region.

At its IPO price of VND 41,900, HPA expects to deliver a dividend yield of approximately 9.2% over the next 12 months, including the remaining dividend for 2025 and an interim dividend for 2026 in cash. Between 2026 and 2030, HPA commits to maintaining a minimum dividend of VND 3,000 per share annually, equivalent to an annual dividend yield of approximately 7.2%.

By 2030, HPA aims to increase its animal feed production capacity to 1 million tons per year, raise 900,000 commercial pigs, expand its cattle farming to 73,000 head, and maintain an annual egg production of 336 million eggs. Expected revenue is projected to exceed VND 12 trillion, with after-tax profit reaching approximately VND 1.75 trillion and ROE remaining above 25%.

After 10 years of development, HPA is among the Top 10 pig farming enterprises with the largest sow herds in Vietnam, Top 13 animal feed production enterprises, leading in the production of clean chicken eggs in the North, and holding the number one market share in supplying whole Australian beef cattle.

Source: https://www.hoaphat.com.vn/tin-tuc/ipo-nong-nghiep-hoa-phat--luong-dang-ky-mua-vuot-quy-mo-chao-ban.html