IPO note – F88

F88 is expected to launch a public offering of 22 million shares in July 2026. Notably, the offering price is set at VND71,000 per share – representing a 10% discount to the current market price of VND78,400 per share. The public offering will enable F88 to satisfy the listing requirements for the HOSE, with the listing expected to take place within 2026.

If successful, the offering will raise VND1,562 billion in equity, reducing reliance on bond issuance, which currently carries a relatively high interest rate of ~14%.

F88’s management has outlined an ambitious business plan for 2026–30, targeting average PBT growth of more than 25%/year and an average ROE of 30%. This plan is supported by the following strategic directions:

• Expanding its market share in the pawn lending segment from 2.5% in 2025 to 5%. The market potential remains substantial as a large portion of Vietnam’s mass-market and low-income population (~50% of the population) still lacks access to bank credit. Outstanding pawn loans in Vietnam account for only 1.2% of total banking credit, compared with ~35% in Thailand (Reuters).
• Cross-selling insurance, investment and other financial products through its network of 972 transaction offices and digital channels. In addition to loan-related insurance products, F88’s subsidiary Green House Technology has already distributed health insurance through its partnership with Pharmacity.

F88’s business performance is currently on a positive trajectory. In Q1 2026, the company reported revenue of more than VND1,000 bn, +63% y/y and fulfilling 19% of its full-year target due to seasonality. PBT reached VND303 billion, +129% y/y and completing 25% of the annual plan. We believe F88 is highly likely to exceed its 2026 business targets, thereby establishing a solid foundation for achieving its goals over the 2026–30 period.

The offering price of VND71,000 per share implies a trailing P/E of 18.3x, higher than regional peers of ~15x. Nevertheless, F88 delivers superior profitability and growth, supported by its leading position in a fast-growing niche market. Therefore, we believe F88 remains an notable investment opportunity in the years ahead.