Vingroup to sell 250 million private shares

Wednesday, Mar 13, 2019 18:30

Vincom Centre Nguyen Chi Thanh commercial centre, run by Vingroup. The firm plans to raise VND25 trillion (US$1.07 billion) this year by issuing 250 million private shares to foreign investors. — Photo

Real estate-retail-technology giant Vingroup plans to sell 250 million private shares to a maximum of five foreign investors in the remaining months of the year.

The selling price is set at a minimum of VND100,000 (US$4.30) per share, valuing the deal at least at VND25 trillion ($1.07 billion).

Vingroup has VND32.75 trillion in charter capital, which is divided into 3.19 billion common shares and 84 million preferred shares.

Capital raised from the share issuance will be spent on developing its agriculture and technology sub-units (VND6 trillion), paying loans and interest (VND10 trillion) and providing additional capital for the parent company and subsidiaries (VND9 trillion).

As of December 31, 2018, Vingroup had VND289 trillion in total assets and VND99 trillion in equity.

The upcoming share issuance is included in the company’s files and will be reported to shareholders at its annual shareholder meeting, the date of which is not yet known.

In August 2018, Vingroup sold 84 million preferred shares to the South Korean firm Hanwha Asset Management for VND9.3 trillion.

The company has 3.19 billion common shares listed on the Ho Chi Minh Stock Exchange (HoSE: VIC).

The company’s shares lost 0.9 per cent on Wednesday to close at VND117,500 per share. — VNS

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