FLC to increase capital with $129 mln rights issue

By Dat Nguyen August 6, 2019 | 09:11 pm PT

A man passes a sign of FLC Group during an event in Singapore. Photo by Reuters/Edgar Su.

Property and leisure company FLC Group plans to increase its charter capital by VND3 trillion ($129 million) by issuing shares to existing shareholders.

It plans to sell 300 million shares at VND10,000 (43 cents) at a ratio of 422 shares to every 1,000 held, it said in a statement. The issue opened on Monday.

But with its share trading at VND3,990 (17 cents) on Wednesday morning, it is not clear how the company plans to persuade shareholders to buy at par.

FLC has a charter capital of almost VND7.1 trillion ($305 million), and the new issue will increase it to VND10.1 trillion ($434 million).

The money raised will be invested in some property developments and used to increase the charter capital of its Bamboo Airways from VND1.3 trillion ($56 million) to VND2 trillion ($86 million), the company said.

FLC Group is one of Vietnam’s largest private companies with interests in property, aviation, agriculture, finance, and golf.

In the first half of this year its revenues rose 19 percent year-on-year to VND6.23 trillion ($268 million) while pretax profit fell 23 percent to VND151 billion ($6.5 million).