Vingroup subsidiary plans eight-fold capital increase

By Dat Nguyen March 9, 2021 | 07:36 pm PT

An artist's impression of the Vietnam Exhibition Fair Center in Hanoi. Photo courtesy of Vietnam Exhibition Fair Center Jsc.

Vingroup’s subsidiary Vietnam Exhibition Fair Center Jsc is set to issue more shares to increase its charter capital nearly eight times to VND12.69 trillion ($551.65 million).

The company, a developer of commercial and housing real estate, is seeking shareholders’ approval for two issues to existing shareholders that are set to be conducted this year.

In the first issue, a shareholder will get to buy 4.52 new shares, and in the second, to a 1:0.38 ratio.

The company is set to raise VND11 trillion from the move, which will be used to fund four major projects in Hanoi.

Nearly 80 percent of the sum will go into the urban complex Vinhomes Co Loa in the outskirts district of Dong Anh and Vinhomes Gallery, a complex of mall and housing units in downtown Hanoi.

The balance will fund an urban complex in the western district of Nam Tu Liem and the National Exhibition Center in Dong Anh.