The State Securities Commission granted a listing license to the North Kinh Do Food Joint Stock Co (North Kido) last Thursday October 6 for the issuance of additional 2,000,000 shares valued at 20 billion dong at par. Accordingly, North Kido will issue 1,500,000 shares to existing shareholders, 300,000 shares to employees and 200,000 shares to strategic shareholders.
Nguyen Quan Vinh, director of Bao Viet Securities Co (BVSC), underwriter for North Kido, said the underwriting price signed by BVSC and North Kido is 34,000 dong per share. The contract was signed two-months ago when the price of North Kido share was between 36,000-37,000 dong per share and now both sides have decided not to change the contract.
The management board of North Kido decided to sell shares to existing shareholders at the price of 32,000 dong per share under that ratio that shareholders with 10 shares will have the right to buy three new shares. Employees will buy shares at a price equal to 70% of the share price for old shareholders or 22,400 dong per share. However, they have to hold their new shares at least two-years before transferring.
The issuance measure was approved at the shareholder meeting in May 2005 and assigned to the management board to realise. At the session on October 7, North Kido shares were traded at 51,500 dong per share.