Vietnam’s largest confectioner, the listed Kinh Do Corp. (KDC), announced Thursday plans to raise VND110 billion (US$6.8 million) by issuing 11 million shares next quarter to fund expansion.
It will sell one million shares each to employees and strategic partners, and the rest to big investors.
Other details are not available but the issue is expected to raise VND1.3 trillion.
The company said the money mobilized would be pumped into some major property projects underway in Ho Chi Minh City.
Kinh Do was building a 45-story commercial and office complex near Ben Thanh Market at a cost of VND2.66 trillion, Tran Le Nguyen, general director of the company, said.
The 5,600 sq.m complex is expected to be completed in three years and house Kinh Do’s headquarters.
Nguyen also said the company would build two new factories this year in Binh Duong province near the city. The over VND660 billion facilities would replace Kinh Do’s existing factory in suburb HCMC and the 6ha site would be turned into a luxury apartment complex.
The company plans to invest VND1 trillion in the project.
It has also begun work on another office-apartment building in the city’s Tan Binh district. The VND911 billion project would be completed next year.
Nguyen said it was a good time for the company to invest in the real estate sector, particularly commercial complexes, because of an increase in the establishment of new offices in the city.
The confectioner posted revenues of nearly VND1 trillion last year and after-tax profit of VND176.6 billion.
They are forecast to grow to VND1.3 trillion and VND240 billion this year.
Source: Thanh Nien
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