Vinh Son-Song Hinh Hydro Power Plant Company (VSH), one of Vietnam's top 10 largest listed firms, said on Tuesday it has won permission to issue 12.5 million new shares to existing shareholders to boost capital.
The firm would issue the shares in a 10-for-1 scheme within 90 days from Monday, when it received the licence from the State Securities Commission, the stock market watchdog said in a statement.
"We are working to finalise the list of shareholders and the issue this time would be for them," a company spokesman said from the central province of Binh Dinh where the firm is located.
Shareholders agreed in May that the firm would issue 25 million new shares in two tranches this year to boost its registered capital and raise funds for new projects, a company report said without giving details of the projects.
The first issue envisaged the company selling 12.5 million shares to existing shareholders at 70 percent of the average share price during the 20 trading days prior to making the shareholder list.
In the second issue, not yet licensed by the State Securities Commission, Vinh Son-Song Hinh would sell 12.5 million shares to strategic investors or, failing that, it could sell the shares to existing shareholders, the report said.
Shares in Vinh Son-Song Hinh were down 4.63 percent at 51,500 dong ($3.2) at 0249 GMT on Tuesday. The firm was valued at $400 million.
Vinh Son-Song Hinh runs two hydro power plants, the 66-megawatt Vinh Son plant and the 70-megawatt Song Hinh plant, in Binh Dinh province, 645 km (400 miles) north of Ho Chi Minh City.
Last month, the government gave it approval to build a 90-megawatt hydro power plant in the area between Binh Dinh province and the central highland province of Gia Lai.
An increase in the number of private businesses and a rise in disposable incomes have spurred growth in electricity demand to around 15 percent annually in recent years, driving the communist government to plan 60 additional power plants by 2020.
Dominant utility Vietnam Electricity group, which owns 60 percent of the firm, is building 20 plants.
Vinh Son-Song Hinh's net profit in the first six months of this year nearly halved from 200 billion dong in the same period last year to 104.6 billion dong ($6.5 million) after dry weather early this year disrupted hydro-power generation.
Source: Reuters
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment