HA NOI (Biz Hub) — Kinh Bac City Development Holding Corp (KBC) on Tuesday reported it had sold 100 million shares for VND1 trillion (US$47.4 million). They were put for sale to increase its charter capital to cover debts (debt-to-equity swap).

The shares were sold last week through a private offering to the company's shareholders and creditors. Three female shareholders paid billions of dong to buy a third of them.

More than 33.3 million shares, equivalent to 33.3 per cent of KBC's capital, were obtained by Sam Thi Huong, Quach Thi Nga and Pham Thi Le.

Le now owns 4.94 per cent of the company's stakes, Nga 3.79 per cent and Huong 2.62 per cent.

According to the company, the three stakeholders are long-term investors and do not represent any other companies.

Almost 67 per cent of shares were purchased by two companies, of which Kinh Bac Consultants and Investment Joint Stock Co bought more than 60.3 million shares and the Kinh Bac Investment and Trading Joint Stock Co bought 6.3 million.

After the purchase, Kinh Bac Consultants and Investment Co raised its stakes in KBC to 15.26 per cent and Kinh Bac Investment and Trading now own 1.6 per cent.

Last year, total revenue of the company reached more than VND1.131 trillion ($53.6 million), a 242 per cent increase over the previous year. Net profit also rose 16 per cent, reaching VND78.8 billion ($3.7 million), ending six consecutive quarters of posting losses.

In 2012, KBC incurred a loss of nearly VND484 billion ($23 million).

According to its 2013 annual business report, KBC will invest in eight projects; mostly industrial park projects. Last year, the company restructured its investment business, focusing on industrial zones which made up 74.4 per cent of total investment while narrowing financial venture to 0.18 per cent. — VNS