BaF Vietnam is about to issue 65 million shares

BaF Vietnam plans to issue 65 million shares in a private placement at VND 15,500 per share to increase its charter capital from VND 2,390 billion to VND 3,040 billion.

BaF Vietnam Agriculture Joint Stock Company (stock code BAF) has just announced a document seeking shareholder opinions in writing. Accordingly, BaF Vietnam wants to offer a maximum of 65 million shares in a private placement to professional securities investors without any limit on the number.

The offering price is VND 15,500 per share, 30.5% lower than the current market price on the stock exchange (VND 22,300). The shares are restricted for one year from the date the offering is completed. The company plans to offer the shares this year or next year.

The purpose of this issuance is to supplement capital for pig farming operations and strengthen financial capacity. Specifically, the total amount expected to be raised from the offering is VND 1,007 billion. The company plans to allocate over VND 557 billion to purchase feed, additives, and raw materials for pig farms. The remainder will be used to purchase breeding pigs, weaned pigs, and gilts for the farms. The disbursement is expected to take place from Q4/2024 to Q4/2025.

If the issuance is successful, the company will increase its charter capital from VND 2,390 billion to VND 3,040 billion.

According to BaF Vietnam, increasing its charter capital is crucial for the company to achieve its livestock sector goals of selling 1.5 million commercial pigs to the market in 2025 and 10 million commercial pigs to the market in 2030. The company also aims to reach a total breeding sow herd of 400,000 by 2030 and to become one of the top three livestock companies in Vietnam.

Currently, the company's total pig herd consists of 11,000 grandparent and great-grandparent sows, over 38,000 breeding sows, equivalent to 1 million replacement gilts and commercial market pigs. In addition, the company owns 36 modern, operational pig farms for both meat and breeding.

Prior to announcing this offering, BaF successfully offered 68.4 million shares in July at VND 10,000 per share and issued 2.6 million ESOP shares in June.

On the stock exchange, BAF shares have fallen 25.3% from their highest price of the year recorded on May 13th (29,850 VND), down to 22,300 VND. The trading volume over the past 10 sessions has consistently exceeded 1 million units, with over 4.7 million shares changing hands on October 8th alone.

For the first half of the year, the company achieved net revenue of VND 2,613 billion, an increase of 8.6% compared to the same period last year. After-tax profit reached VND 154 billion, 12 times higher than the same period last year.

This year, BaF Vietnam plans to increase revenue by 6.6%, to VND 5,543.9 billion, and after-tax profit by an expected 893.2%, to VND 305.9 billion. After half a year, the company has achieved 47.13% of its revenue target and 50.5% of its profit plan.

At the 2024 annual meeting, the Board of Directors stated that it would focus on expanding its distribution channels in major supermarkets such as Big C and Aeon to bring its products closer to consumers . In addition, BaF will strengthen cooperation with farmers to develop its pig herd, contributing to raising livestock standards in Vietnam.

The company anticipates that the total pig herd by the end of 2024 will double compared to the same period in 2023, reaching 75,000 sows and 800,000 market pigs.

As of the end of Q2/2024, BaF had total assets of VND 7,267 billion, an increase of VND 734 billion compared to the beginning of the year. Liabilities amounted to over VND 5,204 billion, the majority of which were short-term liabilities. Equity increased slightly compared to the beginning of the period, approximately VND 2,063 billion.

Source: https://baodautu.vn/baf-viet-nam-sap-phat-hanh-65-trieu-co-phieu-d226965.html