Nam Long Investment’s capital increase plan has not yet announced details about the issuance ratio. However, as soon as the content of the written consultation was revealed to be a capital increase proposal, NLG shares fell sharply, nearly 10%.
NLG shares “evaporated” 10% after a week Nam Long revealed its capital increase plan
Nam Long Investment’s capital increase plan has not yet announced details about the issuance ratio. However, as soon as the content of the written consultation was revealed to be a capital increase proposal, NLG shares fell sharply, nearly 10%.
According to the resolution of the Board of Directors approving the organization of collecting shareholders' opinions in writing in 2025, the list of shareholders with the right to participate in the collection of opinions is the shareholders who own shares on February 4, 2025. The time for collecting shareholders' opinions is in February 2025. The content of this collection of opinions is to approve the plan to offer shares to existing shareholders in 2025 and related issues under the authority of the General Meeting of Shareholders. Details of the share offering plan have not been announced by the company.
As soon as the content of the written opinion was revealed to be a capital increase proposal, NLG shares fell sharply, nearly 10% compared to the end of 2024. Currently, NLG shares are trading at VND 32,800/share.
According to information in mid-December 2024 at the NLG Day event, Nam Long said that in the fourth quarter of 2024, it had delivered the Akari project ahead of schedule with more than 1,400 units and opened for sale more than 200 products of the Nam Long Central Lake project in Can Tho, thereby helping revenue and profit increase dramatically compared to previous quarters. Mr. Lucas Loh, General Director of Nam Long, is confident in achieving the set plan for 2024, about VND 500 billion in net profit.
The handover of both projects brought significant cash flow to Nam Long. Specifically, Akari City received 45% of the contract value, while the Can Tho project received 95% of the contract value at the time of handover.
 |
| Akari City Nam Long Project. |
Regarding capital mobilization activities, recently, this real estate company announced that it has completed the early redemption of two bond lots coded NLGH2229001 and coded NLGH2229002 with a total value of VND 1,000 billion (each bond lot is worth VND 500 billion) on December 25, 2024. These two bond lots both mature in March 2029. Of which, the bond lot coded NLGH2229001 has an interest rate of 9.35%/year, while the coded NLGH2229002 has an interest rate of 12.94%/year. The source of money used to make early payment of the above two bond lots was mobilized by the company through the issuance of bond lot coded NLGB2427004 worth VND 1,000 billion at the end of November 2024.
Nam Long revealed its plan to offer shares in the context of real estate stocks still facing difficulties. Dat Xanh Group Joint Stock Company (code DXG, HoSE) has decided to offer more than 150 million shares to existing shareholders at a ratio of 24:5 with the shareholder list closing date on January 7, 2025. The offering price is 12,000 VND/share, the amount of money raised is expected to reach more than 1,800 billion VND.
Many other real estate companies have suspended their plans when the stock market is facing difficulties. Accordingly, Construction Development Investment Corporation (DIC Corp, code DIG, HoSE) has for the second time in a row abandoned its plan to issue shares to existing shareholders. Specifically, DIC Corp plans to offer an additional 200 million shares to existing shareholders.
With the issuance price of VND15,000/share, DIC Corp can mobilize a maximum of VND3,000 billion, expected to be allocated to the Cap Saint Jacques Complex Project (VND1,135 billion), Vi Thanh Commercial Residential Project (VND1,426 billion) and to pay bond obligations. However, the Board of Directors immediately suspended this plan to ensure the interests of shareholders in unfavorable stock market conditions.
DIG stock price is at its lowest level in nearly 2 years at 17,900 VND/share.
Besides DIC Corp, some other real estate companies have previously made similar moves. In early December 2024, Nam Ha Noi Housing and Urban Development Investment Corporation (code NHA, HoSE) also temporarily suspended the issuance of shares to the public approved at the 2024 Annual General Meeting of Shareholders. The reason for the suspension is to change the offering plan to suit the current production and business situation, capital mobilization and use plan in the coming time. Previously, the company's Board of Directors approved the plan to offer more than 8.8 million shares to shareholders, equivalent to 20% of outstanding shares. The issuance price is VND 10,000/share. The right exercise ratio is 5:1.
In September 2024, Hai Phat Investment Joint Stock Company (code HPX, HoSE) had to stop the plan to offer more than 152 million shares to existing shareholders to ensure shareholder benefits due to unfavorable market conditions and to ensure feasibility.
Source: https://baodautu.vn/co-phieu-nlg-boc-hoi-10-sau-mot-tuan-nam-long-he-lo-ke-hoach-tang-von-d239877.html
Comment (0)