NovaGroup member capitalization "evaporated" thousands of billions on the first day of listing

On November 9, 119.78 million NCG shares of Nova Consumer Group Corporation were listed and traded on UPCoM with a reference price of VND38,000/share, equivalent to a capitalization of VND4,550 billion (USD190 million).

However, during its IPO, the stock price fell by the maximum allowed limit (40%) to 22,800 VND/share, causing Nova Consumer's market capitalization to "evaporate" by 1,820 billion VND to 2,730 billion VND (114 million USD).

Previously, in March 2022, Nova Consumer completed the initial public offering (IPO) of 10.9 million shares at a price of VND 44,000/share, thereby raising VND 479.6 billion. Compared to the IPO, NCG's market price has decreased by 93% after the UPCoM debut session.

After the public offering, this enterprise has 251 shareholders, of which 250 domestic shareholders hold 99.97% of capital and 1 foreign organization. Of which, the 2 major shareholders are Bao Khang Trading JSC holding 65.61% and Anova Investment JSC holding 13.72%.

In contrast to its member company NovaGroup, in the session of November 9, NVL shares of No Va Real Estate Investment Group Corporation increased by 5.16% to 16,300 VND/share. Compared to the price range of 11,000 VND/share at the beginning of the year, the current price of NVL has increased by 48%. However, compared to the peak of 21,000 VND/share in September, the market price of this code has decreased by 22%.

NVL stock price movements (Source: FireAnt).

Returning to Nova Consumer, it is a member of the NovaGroup conglomerate, along with other member companies including: Novaland , Nova Service, Nova Tech, Nova Capital Partners, Nova Logistic, Nova Industry, and Nova Finance.

Nova Consumer operates primarily in three areas: animal health and feed; livestock farming; and food. The group's development strategy follows the 3F model – from farm to table (Feed – Farm – Food). Simultaneously, it is expanding into the fast-moving consumer goods (FMCG) sector, including packaged foods, beverages, and soft drinks, to increase profit margins.

Regarding business situation, closing the first 9 months of 2023, Nova Consumer recorded net revenue of VND 3,194 billion, down 7% over the same period last year.

Due to the cost burden, the company reported a loss after tax of more than 74 billion VND, far from the profit of 249 billion VND achieved in the same period last year.

Compared to the target of bringing in 5,628 billion VND in net revenue and 17 billion VND in profit after tax, the company has completed 56% of the business plan and is far from the profit target .

Source: https://www.nguoiduatin.vn/von-hoa-thanh-vien-novaland-boc-hoi-nghin-ty-trong-ngay-chao-san-a635069.html