Vietnam's Tan Tao Industrial Park Corp (ITA - Itaco) would raise $59 million via issuing 20 million shares to invest in the construction of two residential areas, its chief executive said on Tuesday.
Vietnam, with one of the world's fastest growing economies, joined the World Trade Organisation in January but foreign investors say the country needs to do much to improve infrastructure, mainly in the transport and energy sectors.
Itaco, the first industrial park developer listed in Vietnam, will use the proceeds to build Tan Duc and Tan Tao residential areas, establish a university and also boost the firm's finances, CEO Thai Van Men said in a statement.
Existing shareholders who register by June 25 will be qualified to buy 10 million shares under a 6-for-1 plan and pay for the shares between July 5 and Aug. 1.
Itaco's Management Board will finalise the groups of strategic investors and major investors by June 20 to sell 5 million shares to each at a minimum price of 85,000 dong ($5.3) each, Men said but did not give any names.
The investors should pay for the new shares by June 26.
Shares in Itaco edged up 0.71% to close at 141,000 dong ($8.75) on Tuesday, valuing the company at $525 million. The close price gave the company a price/earnings ratio of of 45.48.
Itaco has been operating the Tan Tao industrial park in Ho Chi Minh City, Vietnam's business centre, since 1997.
It has planned to use 567 billion dong ($35 million) from the share issue proceeds to build Tan Duc residential area over a nine-year period in the Mekong delta province of Long An next to Ho Chi Minh City.
Inside Tan Duc area Itaco would invest 468 billion dong ($29 million) in building a university that targets teaching for 3,000 students and vocational training for 10,000 workers by 2010.
Tan Duc residential area is expected to be built at a cost of 657 billion dong ($40.8 million) in Ho Chi Minh City's outskirt district of Binh Chanh to provide housing to employees working in the Tan Tao industrial park.
Itaco reported January to March net profit soaring to 78.3 billion dong ($4.9 million) from just 7.5 billion dong in the first quarter of last year.
Itaco has a ROA of 8.6% and ROE of 26.1%.
Early last month it said a road building company in which Itaco owns a half has secured Long An provincial permission to invest $400 million in a highway linking Ho Chi Minh City's Tan Son Nhat international airport with the Mekong delta province.
Itaco and a Transport Ministry consultant firm have now been researching for the design of the highway, Itaco said.
Source: Reuters
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