IDP issues nearly 1.18 million ESOP shares at VND10,000

IDP will issue 1,179 million shares under the employee stock option program at VND10,000, much lower than the VND250,000 price range currently trading on the UPCoM floor.

International Dairy Products Joint Stock Company (stock code: IDP) has just announced details of its plan to issue shares under the employee stock option program (ESOP).

Specifically, the company will issue 1.179 million shares, equivalent to 1.9% of the total outstanding shares. The issuance price is VND10,000 per share, significantly lower than the market price of VND250,000 currently traded on the stock exchange.

Employees on the list eligible to buy ESOP shares will pay from March 1 to March 11. The company restricts the transfer of ESOP shares within one year from the end date of the issuance.

In the issuance plan, Mr. Bui Hoang Sang, General Director of IDP said that the purpose of this issuance is to recognize and reward the contributions of employees to the company's development, while encouraging key employees to stick with the company, work together and strive to achieve the set goals.

In addition, the company will collect VND11.79 billion from this issuance to increase charter capital to supplement equity capital to serve business needs. The company's charter capital will increase to VND625 billion if the issuance is successful.

IDP shares were traded on the UPCoM market in early 2021 with a reference price of VND50,000 on the first session. After more than 3 years, the company's market price is currently VND250,000. The company's market capitalization is VND15,337 billion. However, stock liquidity is very low when there are many consecutive sessions without transactions. The average matched volume in the last 10 sessions is only 110 shares.

Not only does IDP issue ESOP shares at preferential prices to employees, it also has a very high dividend rate. Recently, the company paid an advance cash dividend of 85%, meaning that shareholders who own each share will receive VND8,500. With more than 61.35 million shares registered for trading on the UPCoM market, the company is estimated to spend about VND521 billion to pay this advance dividend.

According to the document submitted to the annual general meeting of shareholders, IDP targets this year's net revenue to fluctuate between VND 7,800 - 8,000 billion, an increase of 17-20% compared to VND 6,655 billion in 2023. Regarding the target of after-tax profit, the company gives a low scenario of VND 850 billion, a decrease of 5% compared to the previous year, and a high scenario of 950%, an increase of 6% compared to the previous year. EBITDA is expected to reach VND 1,250 - 1,350 billion, an increase of 2 - 10% compared to VND 1,229 billion in 2023.

In 2023, the company recorded net revenue of VND 6,655 billion, an increase of 9.34% over the same period, while profit after tax increased by 10.31% to VND 894 billion. The company's management said that this was a positive growth rate in the context of companies in the same industry increasing communication and promotion activities (including direct discounts and gifts with increasingly high promotion rates).

“The results were achieved thanks to a strong transformation in managing the distribution system, introducing new brands, expanding customer segments, and maintaining effective investment in communication and promotion in existing product lines,” the company's board of directors reported.

In the near future, IDP will present to shareholders a plan to change its name from International Dairy Joint Stock Company to Lof International Dairy Joint Stock Company, and at the same time change its headquarters from Hanoi to Binh Duong.

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