CDC sets date to exercise right to buy 22 million shares at cheap price

March 31 is the last registration date to buy nearly 22 million CDC shares at VND11,000/share, 48% lower than the current price.

Chuong Duong Joint Stock Company (HoSE: CDC) announced that the last registration date to close the list of shareholders exercising the right to purchase nearly 22 million shares is March 31, 2025. The ex-rights trading date is March 28, 2025.

Thus, the closing date for the list of shareholders participating in the share offering will take place after the closing date for the list of shareholders attending the 2025 Annual General Meeting of Shareholders. Specifically, CDC plans to hold the General Meeting of Shareholders on April 23, 2025, with the last registration date being March 18, 2025.

Chuong Duong Home social housing project of Chuong Duong Joint Stock Company in Thu Duc City, Ho Chi Minh City.

According to the plan, CDC will issue nearly 22 million shares to existing shareholders at VND11,000/share, 48% lower than the market price of VND21,000/share on March 14, 2025. The exercise ratio is 1:1, meaning that a shareholder owning 1 share will have the right to buy 1 new share. The issued shares will not be subject to transfer restrictions.

After the shareholder list is finalized, the time for transferring the right to purchase shares will take place from April 15 to April 21, 2025. The time for registration and payment to purchase shares will last from April 15 to May 13, 2025.

For the remaining undistributed shares, CDC will offer them to other investors at a price not lower than VND 11,000/share, however, these shares will be restricted from transfer within 1 year.

It is expected that CDC can raise nearly VND242 billion from this offering. The proceeds will be used to repay personal loans to contribute capital to Chuong Duong Homeland JSC (a subsidiary of CDC). Buy back bonds at maturity or before maturity. Restructure short-term loans at banks.

On January 23, 2025, CDC's Board of Directors approved the use of the company's assets to contribute additional capital to Chuong Duong Homeland, no later than April 30, 2026. After completing the additional capital contribution, CDC's investment value in Chuong Duong Homeland will increase from VND 150 billion to VND 248 billion. The capital increase is intended to support Chuong Duong Homeland in implementing the Long Binh Tan project.

Long Binh Tan project is a social housing project implemented on a 1.4-hectare land plot in Long Binh Tan ward, Bien Hoa city, Dong Nai province. The total estimated investment is nearly 1,400 billion VND. The project scale includes 3 apartment blocks 22 floors high, with 1 basement for parking, with a total of about 1,098 apartments. The project investor is Chuong Duong Homeland Joint Stock Company.

According to the business registration certificate, Chuong Duong Homeland Joint Stock Company was established in March 2024 with a charter capital of VND 280 billion, headquartered in Bien Hoa City, Dong Nai Province. CDC is currently the parent company with an ownership ratio of 53.58%. The Chairman of the Board of Directors and legal representative of Chuong Duong Homeland is Mr. Van Minh Hoang, who is also a member of the Board of Directors and General Director of CDC.

With plans to issue shares and invest in Chuong Duong Homeland, CDC is gradually expanding its operations and strengthening its financial capacity to carry out strategic projects in the future.