Vietnamese companies are planning to raise funds through the stock exchange. While the Hanoi-based Trang Thi Trade and Services Co Ltd will offer shares to the public for the first time, next month, stainless steel maker Thien Quang Group is planning to issue an additional tranche of 8.34 million shares, to raise money for its expansion.
Trang Thi Trading and Service offers 3.1 million shares in IPO
Trang Thi Trading and Services Co Ltd will offer over 3.1 million shares in auction on June 22 at the Hanoi Stock Exchange.
The reference price is VND10,000 per share. The company’s charter capital after the initial public offer (IPO) will hopefully reach VND135 billion ($6.27 million).
The exchange has called for securities companies to apply for being the IPO agent of the company. Application should have been sent before May 22.
Trang Thi was formerly the Ngu Kim Company that was established in 1955. A subsidiary of the Hanoi Trade Corporation (Hapro), Trang Thi has expanded its operation to 42 outlet across Vietnam, after a spate of mergers with businesses in the same industry. Its main business areas include metal device, electronic and household electricity retail, motor and electricity repairing service; and real estate.
The company has so far developed several retail and property projects worth a total of $52.4 million. It is planning to execute a few other projects, with the total investment of $45.7 million.
Thien Quang Group sells additional shares to fund operations
Thien Quang Group JSC, based in the northern province of Hung Yen, will auction an additional 8.34 million shares to the public. According to the Vietnam State Securities Commission, Thien Quang will have to sell the shares within 90 days from the date of approval (of the public offer), which was May 20.
Royal International Securities Company is the consulting agency for the auction.
The group currently has 15.5 million outstanding shares. Last year, it had issued more than 5.2 million shares to raised its charter capital to VND155 billion. The proceeds were used to supplement the working capital. Nearly half of the money from this time’s issuance will be invested in facility upgrading and purchasing of a representative office in Hanoi.
Thien Quang’s profit last year increased strongly over the 2013 fiscal, to reach VND18.8 billion. The company targets to almost double this year’s profit to VND36 billion.
From a family business formed in 2001, Thien Quang has become a well-established brand in the Vietnamese stainless steel market.