The State Securities Commission has permitted Binh Minh Plastic Joint Stock Co and Full Power Joint Stock Co to issue more shares following proposals by the two listed firms to seek more funds for expansion.
Binh Minh Plastic Joint Stock Co will offer 3.2 million shares coded BMP with the face value of 10,000 dong each. Half of the shares will be sold to existing shareholders, with those holding every 20 shares being eligible to buy three more shares.
A source from the company told the Daily the price would be around 15,000 dong,
The remaining shares will be offered to the company’s strategic partners, and the price will be announced after the company’s plan is approved by the SSC, expected in a few days.
The HCM City-based company expects to gain 120 billion dong from the issue to invest in anew factory in the northern province of Hung Yen. The 100 billion dong plastic factory is forecast to start operation in the middle of 2007.
The company, with a chartered capital of 107 billion dong, now operates two factories producing plastic products in HCM City and in Song Than Industrial Park in Binh Duong Province.
Meanwhile, the listed firm Full Power will sell five million ordinary shares with a face value of 10,000 dong to mobilise capital for its current projects. The FDI-turned shareholding company will offer four million shares to its strategic partners and 957,305 shares to existing share holders at a ratio of 2:1. The rest will be offered to co-founders.
Both companies will not issue shares to outsiders, and the Bao Viet Securities Co, or BVSC, is the underwriter in both cases.
In related news, BVSC is selling more than seven million shares to its existing shareholders at a price of 15,000 dong. This issue is part of a plan to issue 10 million shares to triple its chartered capital to 150 billion dong.