Novagroup is continuously selling shares to repay debt.

After selling over 20 million NVL shares, parent company Novagroup continues to register to sell an additional 2.2 million units to support debt restructuring.

According to recently released information, Novagroup Joint Stock Company has registered to sell over 2.2 million NVL shares of its subsidiary Novaland from December 28th to January 10th of the following year. The purpose is to balance its investment portfolio and support debt restructuring.

Based on NVL's closing price on December 26th, Novagroup could potentially earn over 37.3 billion VND if it sells all of its registered shares. Consequently, its ownership stake would decrease to 19.49%. Novagroup remains the largest shareholder and has ties to the family of Mr. Bui Thanh Nhon, Chairman of Novaland.

For similar reasons, Diamond Properties – another shareholder linked to Mr. Nhon – also registered to sell nearly 4.8 million NVL shares from December 19th to January 9th of the following year. If the transaction is successful, the company could earn approximately 80 billion VND.

Previously, from mid-November to mid-December, Novagroup also sold nearly 20.3 million NVL shares. The average market price during this period was approximately 17,309 VND. Thus, the transaction is estimated to have brought in nearly 350.9 billion VND for Novagroup to balance its investment portfolio and support debt restructuring.

Thus, since November, two legal entities related to Mr. Bui Thanh Nhon have completed and are expected to continue selling a total of more than 27 million NVL shares. It is estimated that both businesses will earn approximately 468 billion VND.

Besides proactively selling off its holdings, Novagroup has been repeatedly forced to sell off shares by securities companies. In total, over the past two months, the company has had to sell off more than 3 million shares six times due to forced liquidation. Diamond Properties has also been forced to sell off approximately 76,700 NVL shares twice due to forced liquidation.

Tens of millions of shares were sold amidst a recovery in NVL's share price. After falling to around 13,000-14,000 VND per unit in October, Novaland's stock began to recover from the beginning of November. Over the past two months, the stock has accumulated an additional 31%, reaching 18,700 VND per share in some sessions. However, in the last two weeks, NVL has tended to trade sideways around 17,000 VND.

Over the past period, the Novagroup ecosystem has focused on debt restructuring. Specifically for Novaland, in a meeting with the Prime Minister in mid-November, Chief Financial Officer Duong Van Bac stated that the group had passed its most difficult period and was 80% complete in its restructuring process. Recently, a $300 million international bond issue was also successfully restructured, with most bondholders agreeing to deferred interest payments and conversion into NVL shares at the initial price of 40,000 VND.

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