The Vinhomes Record-Breaking Deal: Unveiling the Biggest Transaction in Stock Market History

Vinhomes Joint Stock Company (stock code: VHM) has just announced the report on the results of the buyback. Accordingly, the company bought back nearly 247 million of its own shares during the period from October 23 to November 21. The average purchase price was VND 42,444 per share, corresponding to a transaction value of up to VND 10,500 billion – the largest in the history of Vietnam’s stock market.

After the transaction, the number of voting shares of Vinhomes decreased from over 4.35 billion units to nearly 4.11 billion units. The company’s charter capital also decreased from VND 43,544 billion to over VND 41,000 billion.

Regarding the purpose of the buyback, Vinhomes stated that the market price of VHM was lower than the company’s actual value. The buyback of shares ensures the interests of the company and its shareholders. The enterprise affirmed that the share buyback plan would be financed by available cash and operating cash flow, thanks to revenue from the sale of some projects.

However, during the time Vinhomes traded to buy treasury stocks, foreign investors net sold these shares heavily and only had a single light buying session. The total net selling volume reached nearly 91 million shares, with a net selling value of about VND 3,800 billion. This trend has shown signs of reversal as foreign investors have returned to light buying in recent sessions.

In the market, VHM shares saw a strong increase after revealing the treasury stock purchase plan, thereby climbing to a one-year high before fluctuating during the transaction. At the beginning of the trading session on November 27, the market price was VND 42,400 per share. Vinhomes’ market capitalization reached approximately VND 185,000 billion.

In the third quarter of this year, VHM recorded net revenue of VND 33,323 billion, up nearly 2% over the same period last year. Financial revenue was three times higher than the same period with nearly VND 5,498 billion, financial expenses recorded more than VND 1,555 billion, up 63% over the same period last year. After deducting various expenses, Vinhomes reported a third-quarter after-tax profit of over VND 8,980 billion.

In the first nine months of the year, Vinhomes recorded a consolidated net revenue of VND 69,910 billion and a consolidated net revenue converted (including revenue from Vinhomes’ activities and joint venture contracts) of VND 90,923 billion. The company’s consolidated after-tax profit reached VND 20,600 billion.

As of September 30, Vinhomes had total assets of VND 524,684 billion (up 18% from the beginning of the year) and equity of VND 215,966 billion (up 18.3% from December 31, 2023). In the third quarter, Vinhomes continued to launch new subdivisions in major projects as the real estate market recovered.