Share issuance, debt swap plan apnpdroved
Hoà Bình Construction Group Joint Stock Company (HBC)'S General Meeting of Shareholders approved a plan to issue 274 million individual shares to increase charter capital and swap debt, with a maximum total additional issuance value of VNĐ3.14 trillion.
Additionally, in 2024, Hoà Bình aims for a total revenue target of VNĐ10.8 trillion.
During the meeting held on Thursday in HCM City, it was revealed that Hoà Bình would issue 200 million shares to increase capital for VNĐ12,000 per share, and 74 million shares would be used to swap debt with suppliers and subcontractors, with a par value of VNĐ10,000 per share.
The funds generated from the private stock offering will be utilised to bolster business capital and settle existing debts. The implementation timeframe is expected to span from 2024 to 2025, with further details to be announced following approval from relevant authorities.
By the 2024 General Meeting of Shareholders, Hoà Bình had secured agreements from 119 suppliers, subcontractors, and manufacturers to swap debt with HBC shares, amounting to VNĐ821 billion. However, in accordance with the approved issuance plan, only a maximum of 100 shareholders can partake in the debt swap, with the total expected value not exceeding VNĐ740 billion.
Considering the challenging period faced by the real estate and construction industries, Hòa Bình deems it crucial to issue private shares for capital expansion and equity. Swapping debt for shares with suppliers and subcontractors helps alleviate debt repayment pressure, enhance financial capacity, ensure uninterrupted operations, and foster a comprehensive ecosystem that aligns with the Group's goals and strategies.
In terms of financial projections, Hhòa Bình targets total revenue of VNĐ10.8 trillion in 2024, with the parent company accounting for VNĐ8.6 trillion. The anticipated after-tax profit is VNĐ433 billion, with the parent company's share amounting to VNĐ269 billion.
Hoà Bình anticipates a prosperous real estate and tourism industry in 2024, with reputable investors displaying trust and inviting the company to partake in forthcoming projects. With this positive outlook, Hoà Bình believes it is feasible to achieve bidding project revenues of approximately VNĐ2.8 trillion. Additionally, the company will collaborate with investors on various projects such as Lotus Residence with Anh Tuấn Group and Yên Tử Cemetery in Bắc Giang.
Although the business results in 2023 fell short of expectations, Hoà Bình recorded positive outcomes through outstanding efforts. In the first quarter of 2024, the company achieved consolidated revenue after tax of nearly VNĐ1.65 trillion, with a consolidated profit after tax of approximately VNĐ56.56 billion.