Gemadept offers 103.5 million shares to raise about 3,000 billion VND

Gemadept Joint Stock Company (stock code: GMD) is about to offer 103.5 million shares to existing shareholders at VND29,000, equal to about 37% of the market price on the stock exchange.

Gemadept Joint Stock Company (stock code: GMD) recently announced information about the plan to offer shares to existing shareholders at a ratio of 3:1 (shareholders owning 3 shares can buy 1 new share).

Accordingly, Gemadept will offer 103.5 million shares to existing shareholders at VND29,000 per share, equivalent to about 37% of the closing price this weekend of VND78,800). Compared to the company's book value as of the end of 2023, this price is 3.4% higher.

If successful, Gemadept's charter capital will increase from nearly VND3,105 billion to about VND4,140 billion. The offering will be in 2024, after approval from the State Securities Commission. The shares offered will not be subject to transfer restrictions.

The VND3,000 billion raised from the issuance will be used for many purposes. Specifically, the company plans to use VND2,213 billion to purchase fixed assets and more than VND230 billion to repay bank loans . The remaining VND557.7 billion will be used by the company to increase its capital contribution to Nam Dinh Vu Port Joint Stock Company (60% owned by Gemadept) so that the company can carry out production and business activities and repay bank loans. Gemadept's management board expects these amounts to be disbursed from the fourth quarter of 2024 to the first quarter of 2025.

In 2024, Gemadept plans to have revenue of VND4,000 billion, up 4% compared to the actual revenue of VND3,846 billion in 2023. Pre-tax profit is expected to be VND1,686 billion, half of the VND3,147 billion achieved last year.

At the general meeting of shareholders held in June, the board of directors said that the results for the first 6 months of 2024 are expected to reach 53% of the annual plan. This result was achieved thanks to increased output at ports and effective application of the crisis prevention plan.

Gemadept's Board of Directors said that this year it will continue to implement key projects including Nam Dinh Vu Port - Phase 3, Gemalink deep-water port - Phase 2A to expand its scale and create a premise for long-term growth plans. To focus on core business activities, Gemadept also continues to plan to divest from a forestation project in Cambodia with an area of nearly 30,000 hectares.

Regarding dividends, Gemadept approved a plan to pay 2023 cash dividends at a rate of 22%, equivalent to shareholders owning 1 share will receive 2,200 VND. The expected dividend payment date is August 16.

On the stock exchange, GMD shares have increased by 10.2% compared to the price of VND71,700 at the beginning of the year. The company's market capitalization is currently approximately VND24,560 billion. Most securities companies maintain a neutral view on GMD shares. Typically, ACBS expects the target price of this stock to be VND84,900, while Yuanta Vietnam projects VND84,000. According to Yuanta analysts, the P/E of this stock at 9.9 times is about half lower than the industry median of 21.7 times.

Source: https://baodautu.vn/gemadept-chao-ban-1035-trieu-co-phieu-de-thu-khoang-3000-ty-dong-d220424.html