Hoang Anh Gia Lai to raise $53.3M from private placement of shares

By Thi Ha   September 28, 2023 | 01:15 am PT
Hoang Anh Gia Lai to raise $53.3M from private placement of shares
Chairman Doan Nguyen Duc presents ripe durians to Hoang Anh Gia Lai shareholders at a meeting in 2023. Photo by VnExpress/ Thi Ha
Agricultural firm Hoang Anh Gia Lai plans a private placement of 130 million shares at VND10,000, and use the proceeds of VND1.3 trillion ($53.3 million) to repay debts and provide working capital to subsidiaries.

Its shareholders recently approved the plan at an extraordinary general meeting held in Gia Lai Tuesday.

Around 100 professional stock investors will participate in the private offering, which is awaiting approval from the State Securities Commission.

Of the proceeds, the company will use VND323 billion to retire bonds issued in June 2012, restructure debts at TPBank owed by subsidiary Lo Pang Cattle (VND277 billion) and supplement working capital Gia Lai and restructure debts at subsidiary Hung Thang Loi (VND700 billion).

On Tuesday, HAGL shares closed at VND7,510, meaning the shares will be priced at a premium of 33%.

In September last year, HAG had planned to sell 162 million shares at VND10,500 to raise VND1.7 trillion, but was unsuccessful as unfavorable market developments caused investors to back out.

In August this year the company’s net revenues were VND660 billion, with a majority of it (VND338 billion) coming from selling 30,900 tons of bananas.

It exported 32,584 pigs for VND182 billion while other earnings were worth VND140 billion.

At its half-yearly investor conference, chairman Doan Nguyen Duc said the company’s debts were the lowest of any large enterprise’s.

As of June 30 HAG had debts of VND15.954 trillion, of which it owed VND8 trillion to banks.

Duc said profits for this year should exceed VND1 trillion. In 2024, he expected profits of VND2 trillion, enough to eliminate all accumulated losses.

From now through the next three years Duc said the company would stop poultry and vegetable farming due to their low returns during the trial period.

He added it would focus on three main areas: bananas, pigs and durian.

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