Property developer FLC Group has cancelled the issuance of 300 million shares for current shareholders.

Market conditions were unfavourable, leading to the company’s decision, according to FLC Group.

The list of beneficiary shareholders, which was finalised on October 24, has also been revoked.

FLC Group shares tumbled 6.9 per cent on Thursday to hit the floor price of VND4,750 following the news.

The shares had gained as much as 55 per cent since October 11.

In mid October, FLC Group announced it would sell nearly 300 million shares to current shareholders at a rate of 42.2 per cent and a price of VND10,000 per share.

That meant every shareholder would have received an extra 422 shares for each 1,000 shares they held.

If the deal had been success, FLC Group would have received nearly VND3 trillion (US$132.7 million) to raise its charter capital to VND10.1 trillion.

Income from the deal would have been used to provide additional financing for the group’s working capital and real estate projects, and increased the charter capital of aviation firm Bamboo Airways by VND700 billion to VND2 trillion.

FLC plans to launch an IPO for Bamboo Airways in the first quarter of 2020, which will value the aviation firm at $1 billion.

The aviation unit would first list 400 million shares on the Ho Chi Minh Stock Exchange or the Ha Noi Stock Exchange, company officers told Bloomberg.

FLC expected the IPO price for Bamboo Airways would be VND50,000-60,000. The deal could bring FLC Group about $100 million.

In the third quarter of 2019, FLC reported a 120 per cent annual increase in its net revenue, which reached VND5.19 trillion.

But sales cost soared 138 per cent year on year to VND5.13 trillion, narrowing gross profit by 72.6 per cent yearly to VND58 billion.

Financial income jumped 160 per cent to VND466 billion, raising the firm's profits from financial investments by 2.7 times from the previous year.

However, post-tax profit dropped nearly 23 per cent to VND64.4 billion.

After nine months, net revenue was up nearly 50 per cent year on year to VND11.4 trillion but net profit fell 52.4 per cent yearly to VND88.5 billion. — VNS