The managing board of Dat Xanh Real Estate Service & Construction Corporation has approved plans to hike its charter capital to VND3 trillion (US$132 million), and establish a $42 million subsidiary this year.

The capital increase will be carried out in a two-phase payout of stock dividends.

In the first tranche, nearly 32.8 million shares will be issued at the ratio of 13 per cent to pay dividends for business performance in 2016, worth nearly VND329 billion, while the second tranche will offer 14.3 million shares at the ratio of 5 per cent worth VND143 billion.

The company also intends to offer its employees 3 million shares under the Employee Stock Ownership Programme (ESOP) at an estimated price of VND10,000 a share.

Its current charter capital is VND2.53 trillion.

This plan will be presented at the company’s 2017 annual shareholders’ meeting for approval.

Dat Xanh will also seek the shareholders’ endorsement for its plan to set up Sai Gon Riverside Investment Co Ltd to develop the SaigonRes Riverside project in Thu Duc District, HCM City.

Dat Xanh Real Estate will contribute 75 per cent of the VND950 billion ($42 million) for the company, while Sai Gon Real Estate Joint Stock Company will throw in the remaining 25 per cent.

Shares of Dat Xanh Real Estate (coded DXG) has climbed over 50 per cent this year and hit a record high of VND19,600 per share on March 16.

Last Friday, FTSE Vietnam ETF, one of the two major foreign-run exchange-traded funds in Viet Nam’s securities market, added DXG into its basket in the first-quarter review.

Benefiting by this hike, a group of foreign investors related to Dragon Capital, including Amersham Industries Limited, Grinling International Limited, Vietnam Enterprise Investment Limited and Norges Bank, has offloaded 4.2 million combined DXG shares, thereby reducing their stakes here from 16.22 per cent to 14.56 per cent. — VNS