To settle loans and supplement capital for business and investment activities, Hai Phat Invest will offer shares to increase capital at a price higher than market price, and divest capital from large investments.
The Board of Directors of Hai Phat Investment Joint Stock Company (Hai Phat Invest, code HPX) has just approved the plan to issue more than 152 million additional shares at an offering price of VND10,000/share to existing shareholders at a ratio of 1,000:500. The offering price offered by Hai Phat is one and a half times higher than the current market price of HPX shares, around VND6,500/share. If successful, Hai Phat Invest will mobilize approximately VND1,521 billion, thereby increasing its charter capital to more than VND4,562 billion.
Regarding the plan to use mobilized capital, the Company said that it will use VND 1,410 billion to pay the principal and interest of bonds including HPX122018 (VND 317 billion in the fourth quarter of 2024); HPXH2123008 (VND 261 billion in the third - fourth quarter of 2024); HPXH2124009 (VND 263 billion in the fourth quarter of 2024), HPXH2125007 (VND 569 billion from the third quarter of 2024 to the third quarter of 2025).
With the remaining 110 billion VND, Hai Phat Invest will use it to pay the principal and interest of the loan at Bao Viet Commercial Joint Stock Bank - Hanoi branch in the third and fourth quarters of this year.
In case of failure to mobilize capital as planned, Hai Phat Invest will prioritize payment of principal and interest of debts to bondholders, in which priority will be given to principal and/or interest of bonds that are due first until the allocated amount is exhausted.
At the same time, the Board of Directors will supplement the missing capital from its own capital or mobilize from other external sources, which can be loans, bond issuance, loans from other organizations and individuals.
Previously, at the 2024 Annual General Meeting of Shareholders, shareholders approved the private issuance of an additional 140 million shares at VND10,000/share to professional securities investors, with a 1-year transfer restriction.
At this meeting, Mr. Do Quy Hai, Chairman of the Board of Directors of Hai Phat Invest, said that with the stock market about to be upgraded and the real estate market warming up, plus the settlement of bonds, the Company's capital increase plan will be feasible.
If this mobilization plan is successful, the Company plans to use VND1,400 billion to supplement capital for business and investment activities. Specifically, Hai Phat Invest will contribute capital to its subsidiaries, Hai Phat - Binh Thuan LLC (VND200 billion) and Ky Son Green Development Investment JSC (VND450 billion).
In addition, 300 billion VND will be used to supplement investment capital for the development of the Mai Pha New Urban Area Project (Lang Son City); 200 billion VND will be used to pay debts to construction contractors; 150 billion VND will be used to contribute capital according to the investment cooperation contract with Huy Hoang Construction and Trading Investment Joint Stock Company; the remaining 100 billion VND will be used to pay operating costs, taxes and other amounts payable to the State.
It is expected that this mobilization will be carried out this year or next year, gradually doubling Hai Phat's charter capital to more than 6,100 billion VND if both phases are successful.
Hai Phat Invest's capital increase plan was announced in the context of the Company's operations gradually overcoming difficulties.
After being removed from the trading suspension list by HoSE since March 20, HPX shares had a period of strong increase, reaching more than VND 8,000/share, before decreasing to around VND 6,500/share in recent sessions. Notably, Hai Phat Invest recorded profitable business operations again (VND 127.4 billion) in 2023 and the first quarter of 2024 (net profit of VND 15.8 billion).
However, operating cash flow is still a big problem, as capital is stagnant in many projects due to spread out investments. The financial report for the first quarter of 2024 shows that the value of the Company's inventory as of March 31, 2024 was VND 2,895.3 billion, down 3% compared to the beginning of the year, but still accounting for 33% of total assets. Most of the inventory value (VND 2,241 billion) is being recorded as unfinished production and business costs. Meanwhile, short-term receivables continued to increase by 10% compared to the beginning of the year, to VND 3,678 billion.
In addition, Hai Phat Invest's financial investments in joint ventures, associates and other business units are VND517.7 billion. On May 31, Hai Phat Invest approved the policy of transferring all of more than 19 million shares (19.93%) owned at Hai Phat Thu Do Joint Stock Company. At the same time, Hai Phat Invest allowed its subsidiary, Sapphire Investment LLC, to transfer all of 8.36 million shares (14.017%) owned at Traffic Construction Corporation 5 - JSC (Cienco5). These two investments have book values equal to the original price, respectively VND190 billion and VND113.5 billion.
Source: https://baodautu.vn/hai-phat-invest-giai-bai-toan-thieu-hut-dong-tien-d217766.html
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