Gemadept Corporation (GMD), Vietnam's largest listed freight forwarder, said on Thursday it would issue 24.5 million new shares this year or in early 2008 to finance the construction of sea ports and cargo ship purchases.
The issue, slated for the second half of 2007 or the first quarter of 2008, would boost Gemadept's registered capital by 51.6% to 720 billion dong ($44.7 million), Gemadept chairman Do Van Nhan said in a statement.
He did say how much the firm aimed to raise in the issue. Shares in Gemadept closed flat on Wednesday at 168,000 dong ($10.4), valuing the company at $424 million.
The Ho Chi Minh City-based firm would sell 15,834,000 new shares to existing shareholders in a 3-for-1 scheme at a price of between 30% and 50% of the stock's price at the time of sale, Nhan said in the statement.
Gemadept would sell another 6,291,000 shares to strategic investors at a price of at least 80% the stock's price at the time of sale.
The firm would also sell 2,375,000 shares to employees at a price 5% higher than the selling price for existing shareholders, Nhan said.
The proceeds would go to the construction of four sea ports, one building, an industrial zone and to purchase ships, he said without detailing investment in each project.
Gemadept aims for a 15% rise in revenues this year from last year's 1.21 trillion dong ($75 million) and a rise in net profit of up to 30% from 156 billion dong ($9.7 million).
Source: Reuters
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