Vingroup to increase its charter capital to $1.1b

Vingroup (VIC) asked its shareholders for the issuance of about 484.5 million additional shares to increase the charter capital from the capital surplus, according local media.

Accordingly, Vingroup will issue shares to existing shareholders at the rate of 1,000: 225 (each existing shareholder who owns 1,000 shares will receive an additional 225 shares). The additional shares, worth more than VNĐ4.8 trillion (US$215 million), are planned to be issued in the fourth quarter of 2016, said financial website cafef.vn.

According to the group, the value was taken from the accumulated equity surplus of VNĐ7.3 trillion in the consolidated financial statements on March 31, 2016. The additional shares are not restricted to transfer.

After the issuance, Vingroup would have nearly 2.64 billion shares or charter capital of nearly VNĐ26.4 trillion.

Developed as a realty firm since 2002 in Việt Nam, now Vingroup is the largest residential and commercial developer in the country with 84 different projects in prime urban and high growth areas in key cities throughout Việt Nam. It is also one of the biggest players in hospitality, education and healthcare as well as in the modern retail industry in Việt Nam with a nation-wide retail network including supermarkets, convenience stores, electronics and special retail departments.

On May, 2016, the group announced consolidated sales of over VNĐ15 trillion and a profit-after-tax of over VNĐ1 trillion in Q1, as much as two-fold and three fold increases over the same period last year.

Source: VNS