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The new shares include 33 million ordinary shares for the existing shareholders. With every five shares owned, a shareholder will be able to buy one more share.
The Ho Chi Minh City-based corporation will issue half a million shares, equal to 0.3 per cent of its chartered capital, to the board of directors at VND18,000 (86 cents) each. It will also issue 6 million shares, or 3.6 per cent of its chartered capital, to its staff members and subsidiaries also at VND18,000 each.
Kinh Do announced at its annual general meeting in Ho Chi Minh City April 12 that after increasing chartered capital, it would list an additional 40.6 million shares on HoSE, the city’s bourse. The listing timing would be upon the completion of the additional listing report to Vietnam’s State Securities Commission and HoSE.
Kinh Do this year targets total revenue of VND5,200 billion (almost $250 million), up 21.3 per cent on last year and a pre-tax profit of VND600 billion (over $28.8 million), a 22.5 per cent increase.
The group posted last year's turnover of VND4,285 billion ($206 million), and its pre-tax profit reached VND490 billion ($23.56 million). It plans to pay dividends by cash at a rate of 20 per cent (VND2,000 or 10 cents per share).
Food is the core business line of Kinh Do, with some real estate holdings. Its CEO Tran Le Nguyen said his group would this year continue to re-organise its brand structure, continue to invest in the distribution network.
Kinh Do vice president Tran Quoc Viet said it would soon market instant noodles, but the timing was secret because of competition. Asked to disclose the names of cooperation partners in making seasoning powder, he declined to give any names.
COO Nguyen Khac Huy told the shareholders meeting that Kinh Do was targeting some merger and acquisition (M&A) deals but he gave no more details.
Kinh Do chairman Tran Kim Thanh said his corporation had a growth strategy based on mergers and acquisitions. “We expect our M&A work this year to be much better. Through M&A, we’ll bring more values to our shareholders. We were facing a financial storm last year amid the global economic crisis.”
In 2011, the group decided to take on a strategic partnership which ended with a business alliance with Japanese confectionary company Ezaki Glico. It is distributing Glico’s Pocky sweet snack, and will sell other snacks of the Japanese firm soon.
Ezaki Glico reportedly bought 10 per cent of Kinh Do's chartered capital. Deutsche Bank is another major shareholder of Kinh Do. At present, foreign corporate shareholders hold 45.1 per cent of its chartered capital, and foreign individual shareholders possess 1.95 per cent of the firm.