Vinamilk to raise capital to $650m

Wednesday, Aug 03, 2016 17:30

Giant producer of milk and dairy products Vinamilk plans to issue another 242 million shares to increase capital. — Photo
HA NOI (Biz Hub) — Viet Nam Dairy Products Joint Stock Company (Vinamilk) has announced its final list of shareholders for the next issuance of nearly 242 million shares to raise equity.

Accordingly, Vinamilk was expected to release the new shares at a ratio of 5:1, where shareholders holding five old shares would receive one new share. The shares issued were valued at more than VND2.4 trillion (US$108 million).

Vinamilk said the issuance fund was part of the firm's development fund.

According to the firm's consolidated audited financial statement for 2015, Vinamilk received an after-tax profit of VND7.8 trillion, while total undistributed profit after tax stayed at VND5.4 trillion, and the development investment fund recorded a surplus of nearly VND3.3 trillion.

As yet, no date has been set for the issuance, but once it is complete, Vinamilk will have more than VND14.5 trillion in charter capital.

As Vinamilk's largest shareholder, with a stake exceeding 45 per cent, the State Capital Investment Corporation will receive some 108 million new shares. Earlier this week, Vinamilk announced sales revenue of more than VND21 trillion and after-tax profit of VND4.8 trillion in the first half of 2016, an increase of 17 per cent and 32 per cent year-on-year, respectively.

At the close of the market on August 3, each VNM share rose 1.3 per cent to end at VND154,000 on the HCM Stock Exchange. — VNS

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