Steel giant Hoa Phat to pump up charter capital by 10%

By Quynh Trang May 13, 2024 | 05:00 am PT

A worker walks past steel rolls in a factory of Hoa Phat Group in the central province of Quang Ngai. Photo by VnExpress/Giang Huy

Steel giant Hoa Phat Group is set to increase its charter capital by 10% to VND64 trillion ($2.51 billion) by paying dividends with shares.

The company will issue 580 million new shares to existing shareholders. An owner of 10 shares will receive one new.

After the issuance there will be 6.4 billion HPG shares on the market, second only to VPBank at 7.9 billion.

The company will still focus on making steel in the next five to 10 years, chairman Tran Dinh Long told shareholders last month.

It is building the second Hoa Phat Dung Quat Manufacturing Complex in the central province of Quang Ngai, which will increase its capacity to 14 million tons a year.

Currently, it produces around 8.5 million tons a year.

Earlier this year, it also spent VND120 trillion on three projects in the central province of Phu Yen to increase steel production.

Hoa Phat targets a revenue growth of 16% to VND140 trillion and post-tax profit growth of 47% to VNND10 trillion this year.

In the first quarter, it achieved 22% of its annual revenue target and 28% of its profit target.