Hoa Phat to issue over 250 million shares

Monday, Jun 05, 2017 15:10

A worker helps move steel products at Hoa Phat Steel Pipe company in Da Nang. — Photo Hoa Phat Group

Steelmaker Hoa Phat Group (HPG) plans to issue over 250 million shares to raise capital for investment in the second phase of Hoa Phat Dung Quat iron and steel production complex.

HPG will sell those shares at a price of VND20,000 (US$0.8) per share, expecting to earn more than VND5 trillion through the issue.

A part of the mobilised capital will be aimed at raising the company’s working capital.

The subscription period is projected to fall from June 27 to July 17 or will be notified by the Viet Nam Securities Depository (VSD) after Hoa Phat completes the list of shareholders purchasing the shares.

Hoa Phat Dung Quat iron and steel production complex has an annual capacity of four million tonnes of steel, of which two million tonnes are long steel and two million tonnes are hot rolled coils. The project is divided into two phases with fixed capital requirement of VND40 trillion.

The first phase was commenced in February, and the second phase is expected to start in August.

Hoa Phat Group Joint Stock Company is engaged in manufacturing and trading four main product groups, namely steel, other industrial products, real estate and agriculture. The company’s scale of operation is spread throughout the country but mainly in the North.

Steel has been one of the core products of HPG, since its inception. The company is one of Viet Nam’s leading steel producers, with an annual capacity of two million tonnes per year. — VNS

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