The turning point of Taseco Land's capital increase

On September 9, 2025, the State Securities Commission announced that it had received the private placement offer from Taseco Land Joint Stock Company, just days after the company's board of directors approved a resolution to implement the plan of issuing private shares to increase its charter capital.

Taseco Land stated that it would issue 48.15 million private shares at a price of 31,000 VND per share, raising nearly 1,500 billion VND to restructure its debts.

Institutional investors enter the game
This deal not only injects capital but also brings Taseco Land into the radar of long-term investment fund management companies and highly selective securities firms such as Dragon Capital, Saigon - Hanoi Securities (SHS), and VietinBank Securities (CTS).

Taseco Land has gone through 14 rounds of capital increases, growing from VND 6 billion when it was established in 2009 to the current VND 3,118 billion. Among these, the largest institutional investor is Taseco Group JSC, which holds nearly 72.5% of the charter capital.

However, this 15th capital increase is also the first time that external organizations have participated in the share purchase. Specifically, Dragon Capital-managed funds alone registered to buy 20 million shares in this issuance, SHS registered for 8 million shares, while CTS and individual investors bought the remaining shares.

What stands out is that these organizations and individuals are willing to purchase shares at the highest price within the range of recent private placements by real estate companies, despite the one-year lock-up clause.

On the stock market, Taseco Land’s shares (TAL: HSX) are valued about 20% higher than the private offering price, significantly higher than the stock prices of other real estate companies with similar or even higher charter capital, such as Dat Xanh Group, CEO Group, and Phat Dat Real Estate Development JSC.
Analysts highly regard Taseco Land for its ever-expanding project portfolio, with consolidated assets reaching VND 9,324 billion by the end of last year. Additionally, the company’s strong management and project execution capabilities have enabled it to not only perform well in business but also weather market crises in the real estate sector.

Chairman of the Board Phạm Ngọc Thanh has repeatedly emphasized that Taseco Land's greatest asset is the trust and loyalty of customers towards its products and services. As a result, more and more investors and customers are showing interest and joining the company during product offerings. This trust has led to Taseco Land's products being quickly absorbed by the market, ensuring the company enjoys stable cash flow.

Taseco Land’s business performance is a key indicator to watch. In 2023, its gross profit was VND 800 billion, VND 357 billion in 2024, and VND 121 billion in Q1 2025. This year, the company targets a revenue of VND 4,332 billion and net profit after tax of VND 536 billion.

The net profit margin as a percentage of revenue and equity of Taseco Land is high compared to companies of similar scale in terms of charter capital and market capitalization, such as Nam Long Investment JSC, Ha Do Group, or Hoang Huy Financial Services Investment JSC.

According to the consolidated financial reports for 2023 and 2024, earnings per share (EPS) rose from VND 1,522 to VND 2,147. The profit margin on revenue increased to 39.47% in 2024, indicating improved profitability and reflecting better cost management and operational efficiency.

The return on assets (ROA) rose from 5.10% to 6.85%, and return on equity (ROE) improved from 13.55% to 18.35%, showing a clear improvement in the company’s ability to generate profit from total assets and equity.

Compared to industry peers, Taseco Land’s profitability indicators demonstrate strong competitiveness and sustainable profits.

In addition to strong financials, recent moves such as shifting the listing of its shares from the UpCoM market to the HSX, rebranding, and increasing its charter capital show that Taseco Land's leadership is targeting more ambitious goals for the company's future growth.

"The entry ticket" for the project game.

According to the board resolution on the private share issuance plan announced last weekend, the funds raised will primarily be used to pay off bank debts. As a result, financial costs will be significantly reduced, as interest expenses on consolidated loans are expected to reach VND 171 billion in 2024.

Taseco Land is adopting a strategy of "less debt, more equity." Not only will this alleviate liquidity pressure, but a stronger equity base is also a prerequisite for participating in project bidding, as legal requirements mandate that companies must have at least 15-20% of their own capital in relation to the total investment. Each winning bid locks up a portion of the capital, forcing the company to continuously supplement its financial capacity in order to maintain its expansion momentum.

After the issuance, Taseco Land's charter capital increased from VND 3,118 billion to VND 3,600 billion, and its equity rose from VND 4,300 billion to VND 5,800 billion. This not only strengthens the company's financial health but also serves as a "ticket" for continuing to expand its land bank.

This year, Taseco Land aims to acquire an additional 350 hectares of land, bringing its total land bank to 1,000 hectares. Over the past year, Taseco Land has successfully won multiple real estate project bids, including the pedestrian street in the center of Thai Nguyen, the Nam Song Cau urban area (Thai Nguyen), the Luong Ninh urban area (Quang Tri), the Duy Tien urban area (Ninh Binh), and most recently, two new urban projects in Bac Ninh with a total investment of VND 6,500 billion.

However, the rapid expansion has gradually pushed the company’s equity to its limits. Issuing private shares to institutional investors, rather than a public offering, allows Taseco Land to raise funds quickly and participate in new bidding rounds on time.

Compared to market leaders like Vinhomes or Novaland, Taseco Land's capital size is still modest. This gap represents both a challenge and an opportunity for future capital expansion, as long as the company maintains disciplined capital allocation and project effectiveness.

According to the prospectus prepared for the plan to list on the HOSE starting from August 1, 2025, Taseco Land aims to expand its land bank to 5,000 hectares by 2030. This roadmap requires multiple rounds of capital increases, but in a controlled, step-by-step manner rather than an aggressive approach.

Mr. Thanh has previously stated that Taseco Group and related parties will reduce their ownership from over 80% to around 51%, not by selling shares but through capital increases. After this issuance, Taseco Group’s ownership will drop to about 63%, leaving room for future capital increases.

The participation of Dragon Capital and other professional investment firms not only brings capital but also high demands for transparency, risk management, and financial standards. This is a significant boost for Taseco Land, helping it continue to upgrade its governance system, a factor that is becoming increasingly important to attract both domestic and international institutional investors.

The real estate market is experiencing strong segmentation: only companies with sufficient capital, land fund, and governance standards will have a competitive edge. While many competitors are still struggling with debt restructuring, Taseco Land has chosen a structured path: increasing capital, reducing financial burdens, and expanding land fund.

By combining new capital and international governance standards, Taseco Land is laying the foundation for a long-term growth cycle, where capital and governance not only go hand in hand but also support each other to create a new development trajectory.

Source: https://theleader.vn/buoc-ngoat-tang-von-cua-taseco-land-d41980.html