The First Vietnamese Stock Soars Post-Listing: A Surprising Surge Thanks to Critical Information

REE to Issue Bonus Shares as Dividend, Foreign Shareholder Plans to Increase Ownership

On June 12, REE Corporation, a leading multi-sector company in Vietnam, will finalize its shareholder list to distribute a 15% stock dividend for 2024. This move will result in the issuance of an additional 70.65 million shares, pushing the company’s authorized share capital from over VND 4,700 billion to VND 5,400 billion.

Following the announcement, REE shares surged to their daily limit on June 5, reaching a historical high of VND 77,300 per share (adjusted price). Year-to-date, the stock has climbed over 15%, with market capitalization peaking at VND 36,400 billion (approximately USD 1.4 billion).

REE is a prominent player in the M&E (Mechanical and Electrical) industry and has diversified its portfolio into energy and infrastructure. The company boasts an impressive power generation capacity of 1,016 MW from various sources, including hydroelectric, solar, wind, and thermal power plants. Additionally, REE provides 450,000 cubic meters of clean water daily and manages over 180,000 square meters of office space for lease in Ho Chi Minh City.

The company is one of the first two securities to be listed on Vietnam’s stock exchange, along with SAM. REE has consistently attracted foreign investors due to its stable business performance, promising growth prospects, and regular dividend payouts. Its largest foreign shareholder, Singapore’s Platinum Victory, recently registered to purchase an additional 16.04 million shares between May 22 and June 20, 2025, through negotiated deals or order matching on the stock exchange or via the Vietnam Securities Depository.

If the transaction is successful, Platinum Victory’s ownership in REE will increase from over 195.87 million shares (41.59%) to nearly 211.91 million shares (44.99%). A similar transaction by the foreign shareholder between April 17 and May 16, 2025, was not completed due to unfavorable market conditions.

For the 2025 business plan, REE aims high, targeting a 22% increase in revenue to VND 10,248 billion and a 21.7% jump in after-tax profit to VND 2,427 billion. In the first quarter, REE recorded a 13% year-on-year surge in net revenue, reaching VND 2,068 billion. After-tax profit soared by 49% to VND 817 billion, accomplishing one-third of the annual plan.

With Vietnam’s adjusted Power Development Plan VIII, the country is committed to a robust expansion of renewable energy sources by 2030: onshore/near-shore wind power capacity targets of 27,791 MW and 34,667 MW, 6,000 MW for offshore wind, 46,459-73,416 MW for solar power, and 34,600 MW for hydropower. REE is strategically expanding in this sector with projects like the 18.9 MW Thác Bà 2 Hydropower Plant, which began operating in Q1 2025, contributing 51.5 million kWh annually. The 48 MW Duyên Hải Wind Power Project is expected to come online in November 2025, and the 30 MW Trà Khúc 2 Hydropower Plant (a VND 1,000 billion investment) is slated for completion in 2027.

According to Mirae Asset’s recent analysis, REE’s core businesses remain M&E and commercial real estate. In 2024, M&E witnessed a strong recovery from a low base, achieving the highest new contract value in a decade. Mirae Asset predicts that REE will sustain its workload in 2025, backed by a substantial backlog of VND 5,556 billion, including VND 2,534 billion from the Long Thanh Airport project.

In the real estate sector, Mirae Asset anticipates a boost from the upcoming sales launch of The Light Square Phase 1 in 2025, comprising seven villas, 11 adjacent houses, and 27 shophouses, expected to generate over VND 798 billion in revenue. Furthermore, the securities firm is optimistic about ETown 6, a 16-story building with five basements and a total leasable area of 36,780 square meters, targeting a 75% occupancy rate in 2025 with an average rent of USD 27 per square meter per month.