BaF Vietnam is about to issue 65 million shares

BaF Vietnam wants to issue 65 million individual shares at VND15,500/share to increase charter capital from VND2,390 billion to VND3,040 billion.

BaF Vietnam Agriculture Joint Stock Company (stock code BAF) has just announced a document to collect shareholders' written opinions. Accordingly, BaF Vietnam wants to offer up to 65 million individual shares to professional securities investors without any quantity limit.

The offering price is VND15,500/share, 30.5% lower than the current market price on the stock exchange (VND22,300). The shares are restricted for 1 year from the date of completion of the offering. The company plans to offer the shares this year or next year.

The purpose of the issuance is to supplement capital for pig farming activities and enhance financial capacity. Specifically, the total amount expected to be collected from the offering is VND 1,007 billion. The company plans to spend more than VND 557 billion to buy feed, additives, and raw materials for pig farms. The remaining amount will be used to buy breeding pigs, weaned pigs, and gilts for pig farms. The expected disbursement time is from the fourth quarter of 2024 to the fourth quarter of 2025.

If the issuance is successful, the company will increase its charter capital from VND2,390 billion to VND3,040 billion.

According to BaF Vietnam, the increase in charter capital is important for the company to achieve the livestock sector's goal of reaching 1.5 million commercial pigs sold to the market in 2025 and 10 million commercial pigs sold to the market in 2030. The total sow herd will reach 400,000 by 2030 and BaF will become one of the top 3 livestock enterprises in Vietnam.

Currently, the company's total pig herd is 11,000 grandparent and great-grandparent sows, over 38,000 parent sows, equivalent to 1 million gilts and commercial pigs. In addition, the company also owns 36 modern pig farms and breeding pig farms that have come into operation.

Before announcing this offering plan, BaF successfully offered 68.4 million shares in July at VND10,000/share and issued 2.6 million ESOP shares in June.

On the stock exchange, BAF shares have fallen 25.3% from the highest price of the year recorded in the session of May 13 (VND 29,850), down to VND 22,300. The matched order volume in the last 10 sessions has always been over 1 million units, with more than 4.7 million shares changing hands on the session of October 8 alone.

In the first half of the year, the company achieved net revenue of VND2,613 billion, up 8.6% over the same period. Profit after tax reached VND154 billion, 12 times higher than the same period last year.

This year, BaF Vietnam plans to increase revenue by 6.6% to VND5,543.9 billion and profit after tax is expected to increase by 893.2% to VND305.9 billion. After half a year, the company has completed 47.13% of its revenue target and 50.5% of its profit plan.

At the 2024 annual meeting, the Board of Directors said that it will focus on expanding distribution channels at large supermarkets such as Big C and Aeon to bring products closer to consumers . In addition, BaF will promote cooperation with farmers to develop pig herds, contributing to improving livestock standards in Vietnam.

The company expects the total pig herd by the end of 2024 to double compared to the same period in 2023, to 75,000 sows and 800,000 pigs.

As of the end of the second quarter of 2024, BaF had total assets of VND 7,267 billion, an increase of VND 734 billion compared to the beginning of the year. Liabilities were over VND 5,204 billion, most of which were short-term debts. Owners' equity increased slightly compared to the beginning of the period, approximately VND 2,063 billion.

Source: https://baodautu.vn/baf-viet-nam-sap-phat-hanh-65-trieu-co-phieu-d226965.html