AAA auctioned 75 million shares on the Ho Chi Minh Stock Exchange. — Photo courtesy of the firm

An Phat Bioplastics Joint Stock Company has successfully carried out an auction to sell 75 million shares on the Ho Chi Minh Stock Exchange (HOSE), raising nearly VND1.06 trillion (US$45.5 million).

Before the auction, 92 investors registered to buy AAA shares, with the total number of registered shares up to 82.6 million shares, 10 per cent higher than the offering volume.

With the highest bid price of VND16,000 per share, the average winning price was VND14,236, per share; the entire amount raised from 75 million shares will be used for business development, restructuring debt, and production expansion.

In 2021, AAA set a revenue target of VND9.5 trillion, increasing 28 per cent, and after-tax profit of VND550 billion, increasing 94 per cent compared to the previous year, and dividend payout ratio of 15 per cent. The highest profit growth plan in the history of AAA is based on the expectation of positive contributions from three segments including industrial real estate, compostable products, and industrial packaging.

In the first quarter of 2021, AAA’s revenue and export volume of green products recorded double growth over the same period last year. In the long term, when the PBAT manufacturing plant invested by An Phat Holdings is put into operation, AAA will have the initiative in green materials, cutting production costs by about 20-30 per cent, thereby increasing competitiveness to expand its market.

With great market potential, along with many countries implementing policies to promote production growth and green product consumption, AAA’s shift to production of green products is a long-term growth driver for AAA in the coming years. Green products are expected to contribute 40-50 per cent to AAA’s packaging revenue in the next five years.

The successful auction of 75 million shares will help AAA have additional capital and restructure debt to develop new projects. In business results for the first quarter of 2021, despite the impact of the COVID-19 pandemic in Hai Duong, AAA recorded revenue of VND2.2 trillion, an increase of 45 per cent compared to the same period last year. After-tax profit in the first quarter of 2021 reached VND90 billion, an increase of 43 per cent compared to the same period last year, completing 24 per cent and 16 per cent of the revenue and profit plan for 2021, respectively. — VNS