Vietnam’s biggest property developer Vingroup plans to raise VND20 trillion ($880 million) through an issue preference shares to investors this year, according to a submission of its board of directors at the annual shareholder meeting on May 31.
The funds will be used to supplement the investment capital of the group’s ongoing projects. The volume of issued shares, however, has not been announced.
Vingroup expects to pay dividends at the rate of 1,000: 210 (each shareholder owning 1,000 shares will receive dividends by 210 shares). After the dividend payout which is scheduled in this second quarter, the group’s charter capital is expected to increase to VND31.9 trillion ($1.4 billion).
The real estate giant targets its 2018 revenue to touch VND120 trillion ($5.28 billion), after-tax profit at VND8.5 trillion ($374 million), up 34 per cent and 50 per cent year-on-year respectively.
At the meeting, Vingroup’s Chairman Pham Nhat Vuong also said that automobile production will be one of the main business pillars of the group besides real estate, entertainment and retail. With VinFast, Vingroup said it hopes to become a top car manufacturer in the Southeast Asian region, making 500,000 cars per year by 2025.
Vingroup raised $1.3 billion from Singapore’s wealth fund GIC by selling a stake in two units and through a loan in April. One of the units involved is IPO-bound Vinhomes, the luxury villa and serviced apartment development arm of Vingroup. The capital raised will be used to fund the units’ projects, the Vietnamese realty giant said in a statement.
Recently, Vinhomes became the second most valuable listed firm in the Southeast Asian country as the property player made its stock market debut at a premium.