Giant developer Novaland Group has become the second largest listed real estate firm after surging by the maximum allowed 20 per cent on listing day at the HCM Stock Exchange on Wednesday.

Novaland listed almost 589.37 million shares at a starting price of VND50,000 (US$2.1).

Within minutes, the share reached VND60,000 ($2.6). At that price, its market capitalisation topped VND35 trillion ($1.5 billion), second only to Vingroup’s VND111 trillion ($4.8 billion).

It has left in its wake others like Khang Dien, Vinaconex and Dat Xanh Group.

Last year the company mobilised $50 million from VinaCapital, Dragon Capital and a domestic finance company.

This year it received $100 million from Credit Suisse.

Last month it successfully completed a private placement of shares worth nearly $120 million, selling to Dragon capital, Vina Capital, GIC, JP Morgan, RWC Partners, Duxton Asset Management, VFM and Ban Viet.

The company’s chairman, Bui Thanh Nhon, said next year it would hand over units in seven projects it had sold in 2014 and 2015.

That would allow the company to enter in its books sales revenues of over VND17.5 trillion ($761 million) and after-tax profits of VND3.1 trillion ($135 million).

NVL has 9.8 million square metres of land, enough for the next five years, he said.

Novaland is among the biggest real estate developers in the south with 40 projects in all segments like houses, villas, apartments, and office-tel. — VNS