A vessel anchors at Gemalink Port. — Photo courtesy of the company

Gemadept Corporation plans to increase its charter capital by up to 33 per cent through the issuance of over 100 million shares.

Specifically, the company intends to offer up to 103.5 million new shares at a price of VNĐ29,000 per share (US$1.14). The rights ratio will be 3:1, allowing shareholders holding three existing shares to purchase one new share.

The proposed offering price represents a 65 per cent discount to Gemadept's current market price of VNĐ83,400 per share as of June 7. The book value per share was recorded at VNĐ28,050 as of the end of 2023.

If approved by the State Securities Commission (SCC), the share issue will go ahead immediately and all the issued shares will not be subject to any transfer restrictions.

It is estimated that Gemadept can raise over VNĐ3 trillion with the move, bringing its charter capital to VNĐ4.14 trillion - a 33 per cent increase.

Gemadept plans to allocate the additional funds to purchase fixed assets, repay bank loans and increase its capital contribution to Nam Đình Vũ Port JSC, in which it currently holds a 60 per cent stake.

In its business plan for 2024, it has set a revenue target of VNĐ4 trillion, a four per cent increase from 2023 levels. However, the company's profit before tax is expected to decline by 46 per cent to nearly VNĐ1.7 trbillion, primarily due to an estimated 82 per cent drop in profit from the divestment of subsidiaries.

Despite the decline in profits, Gemadept plans to distribute a cash dividend of 22 per cent for the 2023 fiscal year, equivalent to VNĐ2,200 per share.

Analysts remain optimistic about the company's growth potential in the coming years, citing its two major projects - the Phase 2 expansion of Gemalink Port and Phase 3 of the Nam Đình Vũ project - as key drivers. — VNS