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|FECON Corp. will use its newly issued shares to increase the corporation's charter capital.- Photo baomoi.com|
Following the request by bondholder Vietcombank Securities Company Limited, FECON will issue two million new shares to be converted. The conversion price is VND19,700 (US$0.88) per share and conversion ratio is 1:51, meaning one bond in exchange for 51 shares.
Prior to this, FECON, a Vietnamese construction and engineering company, issued 500,000 convertible bonds with total value of VND500 billion ($22.4 million).
FECON expects to issue shares on September 30, 2016, after the State Security Commission of Vietnam approves the increase in charter capital from these convertible bonds. The convertible shares are expected to be traded before October 9, 2016, following the approval of the State Security Commission.
With the newly issued shares, FECON's charter capital will increase from VND457.228 billion (US$20.5 million) to VND477.228 billion (US$21.38 million). The number of shares in circulation will also increase to 47.72 million, compared with the previous amount of 45.722 million.
The new shares will be listed after the necessary procedures are completed.