Vietnamese property developer Novaland Investment Group (HoSE: NVL) has seen unusually heavy share trading amid a major fundraising plan, contrasting transactions by shareholders linked to its founding family and continued pressure from substantial debt obligations.

Approximately 570 million NVL shares changed hands over the past month, equivalent to nearly 24% of the company's more than 2.4 billion listed shares.

The surge in trading activity has coincided with sharp price declines, intermittent recoveries and the company's plan to raise nearly VND8.01 trillion ($307 million) through a rights offering.

NVL trading surges as major shareholders make contrasting moves

On September 30, more than 97 million NVL shares changed hands, with a total trading value approaching VND1 trillion.

The exceptionally high volume followed two consecutive sessions in which the stock fell to its daily lower trading limit, amid a broader period of steep declines.

A day earlier, more than 65 million shares had been queued for sale at the floor price.

September 30 was also the ex-rights trading date for Novaland's share offering to existing shareholders.

Following the sell-off, bargain-hunting investors entered the market and absorbed a substantial amount of selling pressure.

Trading remained elevated in subsequent sessions, with 51.3 million shares changing hands on October 2 and more than 73 million on October 9.

The volatility came as Novaland proceeded with a plan to offer nearly 800.7 million new shares to existing shareholders at VND10,000 per share.

The company expects to raise approximately VND8.007 trillion from the offering.

Novaland has extended the deadline for transferring subscription rights to November 23, while shareholders have until November 26 to register and pay for the new shares.

Shareholders connected to the family of founder Bui Thanh Nhon have also announced transactions in opposite directions.

Cao Thi Ngoc Suong, Nhon's wife, registered to sell 6.3 million NVL shares between October 26 and 30 to meet personal financial needs.

Meanwhile, Diamond Properties Joint Stock Company registered to purchase seven million NVL shares during the same period as part of a portfolio adjustment.

If the transaction is completed, Diamond Properties' ownership in Novaland will increase from 7.423% to 7.715%.

The proposed purchase follows the company's sale of 2.58 million NVL shares through a negotiated transaction on October 6.

Less than three weeks after that disposal, Diamond Properties has moved to acquire a larger number of shares.

On October 6, Novaland also rejected rumors circulating on social media that the company was bankrupt or unable to continue operating.

The developer said those claims did not accurately reflect its legal status or actual business operations.

Property projects resume as shares trade near historic lows

Despite its financial challenges, Novaland has reported progress in restarting and completing several major developments.

The company plans to resume sales at its Aqua City project from October 31 after a prolonged period of resolving legal obstacles.

Other developments, including The Grand Manhattan, Victoria Village and The Park Avenue, are continuing construction, completion or handover activities according to their respective schedules.

Nevertheless, NVL shares remain near historic lows, trading around VND10,000 per share.

The substantial trading volume and transactions involving founding-family-related shareholders have raised questions about possible changes in ownership and investor expectations.

However, trading volume alone does not establish that a major shift in the shareholder structure has occurred.

Identifying the nature of these transactions would require further information about buyers, sellers and officially disclosed changes in ownership.

Novaland faces nearly VND73 trillion in outstanding debt

The heightened market activity comes as Novaland continues to address significant financial obligations, despite signs of improvement in its reported business performance.

According to figures disclosed by the company, third-quarter 2026 net revenue exceeded VND5 trillion, approximately 200% higher than a year earlier.

After-tax profit for the quarter surpassed VND1.1 trillion.

For the first nine months of 2026, estimated net revenue exceeded VND10 trillion, while after-tax profit reached more than VND2.8 trillion.

This marked a turnaround from a loss of VND1.82 trillion during the corresponding period of 2025.

However, improved accounting profits have not necessarily translated into stronger operating cash flow.

During the first half of 2026, Novaland recorded negative net cash flow from operating activities of nearly VND3.6 trillion.

As of June 30, the developer's total outstanding borrowings stood at approximately VND72.9 trillion.

Of that amount, around VND30.5 trillion was due within 12 months, including approximately VND13.2 trillion in bonds.

The company also reported more than VND16.7 trillion in overdue principal at the end of the reporting period.

Several bond obligations remained partially unpaid.

Novaland attributed the payment delays to difficulties securing sufficient funds and said it was continuing negotiations with investors.

Rights offering aims to ease bond repayment pressure

Against this backdrop, Novaland's planned VND8.007 trillion share offering is a central component of its debt restructuring efforts.

The company intends to allocate more than VND5.953 trillion from the proceeds toward partial or full repayment of principal on 13 outstanding bond issues.

The effectiveness of the plan will depend on the success of the share offering and the company's ability to deploy the proceeds according to schedule.

Novaland's reviewed financial statements for the first half of 2026 continued to highlight material uncertainties surrounding the company's ability to operate as a going concern.

These concerns stem from negative operating cash flow and the substantial volume of financial obligations that are either approaching maturity or already overdue.

While the recent surge in NVL trading indicates heightened investor attention, it does not by itself demonstrate a fundamental improvement in the company's financial position or a decisive shift in shareholder expectations.

For Novaland, the critical developments to monitor remain the outcome of its capital raising, progress in restructuring outstanding debt, actual cash collections and the timely resumption and handover of property projects.

These factors will determine whether the developer can translate its improving reported earnings into a more sustainable financial recovery.

Manh Ha