Headquarters of property developer Novaland in HCM City’s District 1. — VNS Photo Bồ Xuân Hiệp

HCM CITY — Property developer Novaland (stock code: NVL) has rejected rumours that its chairman has resigned, saying such claims are "fabricated and misleading."

Recent social media reports claimed Bùi Thành Nhơn would step down on January 20. The company has clarified that these claims are "false, causing confusion among stakeholders and the public."

Novaland assured that its operations remain stable and that chairman Nhơn continues to lead the company effectively.

Its stock price has been steadily declining since January 9, closing at VNĐ8,950 per share on January 14, its lowest since listing in 2016 and below par value, which has reduced market capitalisation to some VNĐ17.5 trillion (US$687 million).

Novaland, one of Việt Nam's leading real estate firms, has faced severe financial difficulties over the past few years due to a sluggish market, worsened by the arrest of former chairwoman of Vạn Thịnh Phát, Trương Mỹ Lan, who is on death row for fraud.

Since early 2024, Novaland's shares have dropped nearly 47 per cent, plummeting over 90 per cent from their peak of VNĐ92,366 in June 2021.

Recently, the Board of Directors announced changes to the price and conversion ratio for a $300 million international bond issuance.

As of January 5, bondholders must now pay more than three times the market price to convert bonds into shares, with a conversion price set at VNĐ36,000 per NVL share and a conversion ratio of one bond for 149,038 shares.

This conversion price is 3.5 times the NVL price of VNĐ10,250 as of December 31, 2024.

In 2021, Novaland issued $300 million in international convertible bonds listed on the Singapore Stock Exchange, with a five-year maturity and a fixed interest rate of 5.25 per cent.

Initially, each bond was valued at VNĐ200,000 with a conversion price of VNĐ135,700 per share.

In July 2024, it announced the successful restructuring of the bond package, which initially had a conversion price of VNĐ40,000 per NVL share.

Last week, it disclosed plans to repurchase all 21 bond codes issued since 2020 prior to their maturity dates, with an estimated maximum amount of VNĐ7 trillion.

After nearly two years of comprehensive restructuring, Novaland has stated it has successfully restructured a significant portion of its debts.

It also said it has secured additional capital to advance its projects. Recent updates also indicate changes within its senior management team. — VNS