Becamex IJC to offer 80 million shares for sale

Wednesday, Oct 28, 2020 07:58

A stretch of Binh Duong Highway project constructed by Becamex Infrastructure Development JSC (Becamex IJC, HoSE: IJC). — Photo

Becamex Infrastructure Development JSC (Becamex IJC) will sell 80 million shares in a public offering deal to increase charter capital.

The company expects to raise at least VND800 billion (US$34.5 million) from the share sale, which will take place at the Ho Chi Minh Stock Exchange. Each share is worth at least VND10,000 ($0.43).

The initial price of the auction is the share’s book value recorded in the latest financial report or the average 30-day share price prior to the notice of public offering.

The offering date has not been decided yet.

The income raised from the share sale will be spent increasing capital and investment for the firm’s projects.

The company said in a statement that the capital hike would help cut capital costs, improve the working competency, and increase its earnings to meet the full-year targets.

Becamex IJC’s shares, listed on the Ho Chi Minh Stock Exchange as IJC, fell 1.6 per cent to end Monday at VND12,300 apiece.

In early 2017, Becamex IJC halved its charter capital, a move that was rarely seen among local companies.

The firm bought back 50 per cent of total outstanding shares from shareholders for VND10,000 apiece in early 2017. The company's shares listed on HoSE as IJC were trading close to VND8,500 apiece.

Funding for the share buyback was the firm’s income from selling assets at affiliates. After the share buyback, Becamex IJC cut its capital by half to VND1.37 trillion.

Becamex IJC is a member of the Investment and Industrial Development Joint Stock Corporation (Becamex, HoSE: BCM). Becamex has a 78.8 per cent stake at its affiliate. — VNS

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