The only person who registered to buy “cancelled the deal”, VE4 release failed despite “surprisingly cheap” price

VE4 stock price is among the highest on the stock exchange, 259,400 VND/share. The offering price is much lower, 10,000 VND/share, but still "unsold".

VNECO4 Electricity Construction JSC (stock code VE4) announced information about the unsuccessful issuance of more than 1 million shares. The reason was that the only individual participating suddenly withdrew.

Mr. Nguyen Giang Nam, plans to buy the entire issuance to hold 50% of VE4's charter capital. Mr. Nam did not own any shares in VE4 before.

However, he sent a document refusing to pay for the purchase, forcing the VE4 Board of Directors to cancel the entire issuance and not distribute shares to any other individuals or organizations.

According to the plan for the annual shareholders' meeting scheduled to be held today (April 26), the Board of Directors of VE4 will present a plan to privately offer 2 million shares.

The offered shares will be subject to transfer restrictions for 3 years for strategic investors and 1 year for professional investors.

Expected issuance date is 2025, after receiving approval from the State Securities Commission. The offering price will be decided by the Board of Directors at the time of implementation.

With a charter capital of only VND 10.28 billion and equity at the end of 2024 of only VND 9.9 billion, VE4 does not reach the minimum threshold of VND 30 billion to maintain the status of a public company according to regulations.

If the capital increase is not completed before January 1, 2026, the enterprise may be forced to delist from the HNX.

Despite the poor business situation, VE4 shares have climbed to the price range of VND 259,400/share since the end of March 2024 without any transactions.

Source: https://baodautu.vn/nguoi-duy-nhat-dang-ky-mua-huy-keo-ve4-phat-hanh-bat-thanh-du-gia-re-bat-ngo-d312256.html