Pomina Steel (POM) stops plan to issue 70 million individual shares

Pomina Steel Corporation (Code: POM) has approved the temporary suspension of the plan to issue individual shares to Nansei. According to the original plan, Pomina will issue 70,175,343 individual shares to Nansei Steel Company at a price of VND10,000/share.

The expected amount of proceeds will be VND 701.8 billion and will be used by the company to supplement capital for production and business activities. The issuance volume will be divided into 2 phases with 10,604,038 and 59,571,305 shares issued in August 2023 and September 2024, respectively.

Pomina Steel plans to issue 70 million private shares, image 1 — Pomina Steel (POM) stops private offering plan of 70 million shares (Photo TL)

If the private offering is successful, Nansei will become a major shareholder of Pomina with 20.04% ownership of charter capital.

By September 2023, Pomina Steel had consulted shareholders and adjusted the private offering plan for 70,175,343 million POM shares. The offering period was extended to 2024 based on the agreement of the two parties.

Regarding business performance, in the third quarter of 2023, Pomina Steel achieved revenue of VND 503.5 billion, down 83.1% over the same period. The business situation below cost price caused the company to have a gross loss of VND 5.2 billion.

Financial revenue decreased by 32.3% to VND11.3 billion. Financial expenses also decreased by half, to VND58.9 billion. Sales expenses and administrative expenses were negative VND45.9 billion. After deducting all expenses, Pomina Steel lost an additional VND110.5 billion after tax.

Pomina's accumulated revenue in the first 9 months of the year reached VND2,948 billion, down 73.5% over the same period. The company lost VND647 billion after tax. Currently, Pomina's accumulated loss has reached VND868.5 billion, equivalent to nearly 1/3 of its charter capital.

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