A worker feeding pigs at one of Dabaco's farms. — VNA/VNS Photo

Dabaco Vietnam, Việt Nam's leading livestock firm, has approved plans to increase its charter capital through an Employee Stock Ownership Plan (ESOP) and by offering shares to existing shareholders, aiming to raise over VNĐ1.2 trillion (US$47.2 million) for investment in a soybean oil pressing and refining plant.

The first plan involves offering 12 million shares under ESOP, which accounts for 4.96 per cent of the total outstanding shares. The issuance price is set at VNĐ10,000 per share.

The implementation of this plan is scheduled for 2024, following approval from the State Securities Commission. The ESOP shares will have a transfer restriction for a period of 12 months from the date of issuance.

Additionally, Dabaco has approved a plan to offer shares to existing shareholders at a rate of 33.33 per cent. This means each shareholder owning 100 shares will have the right to purchase more than 33 new shares at VNĐ15,000 per share. This plan is expected to be executed in 2024.

Currently, DBC shares are trading on the stock market at VNĐ34,850 per share. The estimated offering price to existing shareholders is approximately 57 per cent lower than the market price.

Based on the number of outstanding shares, Dabaco plans to offer an additional 80.6 million shares to existing shareholders, aiming to raise over VNĐ1.2 trillion.

If both offerings are successfully completed, Dabaco's charter capital will increase from VNĐ2.4 trillion to VNĐ3.3 trillion. The total amount raised, approximately VNĐ1.3 trillion, will be entirely used by the company to invest in Dabaco Vegetable Oil Company Limited for the implementation of the "Investment Project to build Dabaco soybean oil pressing and refining plant."

The disbursement of the mobilised capital for the investment project is expected to take place between the third quarter of 2024 and the fourth quarter of 2025. — VNS