Having just joined hands with Trump Group, what is Mr. Dang Thanh Tam's company doing with the 6,000 billion VND?

Mr. Eric Trump, executive vice president of The Trump Organization and Mr. Dang Thanh Tam, chairman of KBC, signed a cooperation agreement witnessed by Mr. Trump on September 25, in Florida (USA) - Photo: KBC

Mr. Dang Thanh Tam - Chairman of the Board of Directors of Kinh Bac Urban Development Corporation (KBC) - has just signed on behalf of the Board of Directors to approve the plan to offer private shares and the plan to use capital raised from the offering.

Lowest expected price 16,200 VND per share

This private issuance to increase KBC's charter capital has a total of about 250 million shares offered. The period is from the first quarter to the third quarter of next year, after being approved by the State Securities Commission.

With the above expected number of shares, the par value will be equivalent to 2,500 billion VND, the offering ratio accounts for nearly 33% of the outstanding shares.

However, the lowest expected offering price, according to KBC's calculations, is about VND16,200/share. With this plan, KBC can collect at least VND4,050 billion. But it should be noted that this is the "lowest price".

KBC said that when the Securities Commission fully approves the offering registration documents, the company's Board of Directors will re-determine the appropriate price.

Accordingly, the price offered by KBC will be calculated based on the average closing price of 30 trading sessions immediately preceding the date the Securities Commission approves the application and will not be lower than VND16,200.

On the stock market, each KBC share is currently priced at VND29,350, up nearly 9% after 1 month and nearly 11% after 1 quarter. KBC shares have performed more positively after the company joined hands with Donald Trump's family corporation.

Specifically, in early October this year, KBC announced that the Trump Group would develop a hotel, golf course and residential project through a cooperation agreement with Hung Yen Hotel Services Joint Stock Company. This is a subsidiary of KBC. The project scale is about 1.5 billion USD.

What is Mr. Dang Thanh Tam's company raising capital for?

According to KBC's resolution, the proceeds from the offerings will be used to restructure debts and supplement working capital for business operations.

In the detailed capital usage table attached by KBC, KBC wants to restructure debts of up to VND 6,090 billion in 2025. Of which, VND 4,428 billion is expected to be used to pay off the principal and interest of Saigon Bac Giang Industrial Park JSC, VND 1,462 billion to pay off the principal and interest of Saigon Hai Phong Industrial Park JSC, more than VND 105 billion to pay off the principal of VietinBank loans, and supplement working capital of VND 160 billion...

According to KBC, assuming that on the issuance date, the issuance price is calculated at about VND 22,000/share, the total amount of revenue is about VND 5,500 billion.

However, currently, to restructure debts, improve financial capacity and supplement working capital for production and business activities, the total amount of money KBC prioritizes to use is about VND 6,250 billion (equivalent to the offering price of VND 25,000/share).

“In case the amount of money collected from the offering is less than VND6,250 billion, the Board of Directors will balance to allocate each purpose of capital use as prescribed…”, KBC's issuance plan clearly stated.

In case of "unsold" or lower revenue, KBC said it will flexibly use bank loans, other capital sources from retained earnings and depreciation during the year to offset the total capital needs of the corporation.

In case the amount of money raised from the offering is greater than VND 6,250 billion, KBC's Board of Directors will pass a resolution on adding the purpose of capital use.

Source: https://tuoitre.vn/vua-bat-tay-tap-doan-trump-cong-ty-ong-dang-thanh-tam-huy-dong-6-000-ti-lam-gi-20241116084815676.htm