Huu Nghi confectionery to raise VNĐ100 billion to pay debts

HNF shares plummeted from the peak of VND132,000 per share on February 28 to VND45,000 per share on Wednesday, equivalent to 66 per cent decrease with very low liquidity. — Photo vtc.vn

Huu Nghi Food Joint Stock Company (HNF) plans to issue 10 million shares to existing shareholders to increase its charter capital from VND200 billion to VND300 billion (US$8.6 to $13 million).

The company will offer the shares at the price of VND10,000 each.

A shareholder who owns one share is entitled to one right to purchase.

Money raised from the sale will be used to pay short-term loans of VND92.4 billion and supplement working capital for production and business, the company said.

HNF shares plummeted from the peak of VND132,000 per share on February 28 to VND45,000 per share on Wednesday, equivalent to 66 per cent decrease with very low liquidity.

The book value at the end of 2018 of HNF was VND13,400 per share.

HNF has just decided to offload nearly 1.2 million treasury shares during October 8-31. The value of treasury shares was more than VND49.6 billion.

The company specialises in confectionery production. It recorded a net revenue of VND579 billion in the first six months, down 15 per cent, and post-tax profit of VND136 billion, down 12 per cent year-on-year. — VNS