Trading down, many businesses still want to issue more shares

On April 20, the value of stock transactions continued to decrease to over VND8,000 billion on all three exchanges. Weak cash flow caused the stock indices to fluctuate within a narrow range. At the end of the session, the VN-Index increased by 0.27 points to 1,049.25 points and the HNX-Index increased by 0.76 points to 206.61 points. Despite the low trading volume, many businesses still planned to issue more shares.

Stock trading is sluggish but companies still plan to issue more shares

For example, Thai Nguyen International Hospital Joint Stock Company (stock code TNH) will close the shareholder list on April 21 to pay dividends in 2021 in shares and issue new shares for sale to existing shareholders. Accordingly, the hospital will issue 15.56 million shares to pay dividends in 2021 to shareholders at a rate of 30%, shareholders owning 100 shares will receive 30 new shares. The issuance value at par value is 155.6 billion VND.

At the same time, Thai Nguyen Hospital will issue nearly 25.94 million new shares to the public for sale to existing shareholders. The issuance ratio is 2:1, meaning that shareholders who own 1 share will receive 1 purchase right, and for every 2 purchase rights, they will be able to buy 1 new share. The issuance price is 20,000 VND/share, expected to raise more than 518 billion VND. The plan to use the proceeds from the offering includes spending 300 billion VND to invest in the Viet Yen TNH Hospital project; more than 30.7 billion VND to buy machinery and equipment for Thai Nguyen International Hospital and 178 billion VND to repay loans from credit institutions.

Or the 2023 General Meeting of Shareholders of Thang Long Investment Group Joint Stock Company (stock code TIG) held on April 19 also approved the plan to issue VND240 billion in private shares. The targets and plans for revenue, profit and dividend payments are also built on the scenario of TIG successfully issuing these shares.

Similarly, Sonadezi Chau Duc Joint Stock Company (stock code SZC) also announced a plan to offer shares to shareholders in the period 2023 - 2024. The company offers to existing shareholders at a ratio of 2:1, corresponding to an expected offering of 60 million shares, authorizing the board of directors to decide the offering price but not lower than the book value of the shares and is expected to be implemented in 2023 - 2024.

Masan Group has just announced the documents for the 2023 annual shareholders' meeting scheduled to take place on April 24. It includes the content of soliciting shareholders' opinions on the plan to offer new shares and the capital use plan. Specifically, Masan will privately offer dividend-preferred shares with a maximum quantity of 10% of the total outstanding shares at the time of offering. Currently, Masan has a charter capital of VND 14,237 billion, equivalent to 1.42 billion outstanding shares. Thus, Masan will privately offer a maximum of about 142 million MSN shares.

The privately offered shares are subject to transfer restrictions for 3 years for strategic investors and 1 year for professional investors from the date of completion of the offering. During the first 5 years from the date of issuance, the preferred shares are not entitled to dividends. From the 6th year onwards, the fixed dividend rate for each preferred share is a maximum of 10%/year. At the same time, each preferred share is allowed to be converted into a common share at any time after the date of issuance.

Source: https://thanhnien.vn/giao-dich-xuong-thap-nhieu-doanh-nghiep-van-muon-phat-hanh-them-co-phieu-185230418173542026.htm