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Steel giant to issue more shares
HCM City-listed Pomina Steel Corporation will offer an additional 44.45 million shares in order to raise capital for its business development plan.
The steel producer will use 24.45 million shares to fund a 15-per-cent dividend payment for its 2009's earnings. The capital source for this payment comes from last year's after-tax profit.
The company earned an after-tax profit of VND656.4 billion (US$34.5 million) and a turnover of VND7.5 trillion ($394.7 million) last year, which contributed a return-on-earnings (ROE) ratio of 8.71 per cent.
The company will offer 1 million shares to their staff, with the offering price accounting for 60 per cent of its market value. They will also sell another five million shares to existing shareholders at face value.
The remaining 14 million shares will be sold to big investors and finance institutes at a discounted price. The additional offerings will be implemented after Pomina receives approval from the State Securities Commission.
Do Xuan Chieu, Chairman of Pomina, said the company would increase its charter capital to VND2.07 trillion ($108.9 million) through this issue. The money raised by selling shares will then be used to fund the construction of a three-million tonne seaport and a steel mill, which will have the capacity to produce 1 million tonnes a year.
The remaining capital will then be added to the company's working capital in an effort to reduce the its short-term lending capital in US dollars, Chieu said.
POM's shares were priced at VND49,500 yesterday.
The company already announced that it had earned an after-tax profit of VND395 billion ($20.8 million) in the first four months of the year. Pomina is projecting to earn an after-tax profit of VND612 billion ($32.2 million) and a turnover of VND10.1 trillion ($531.6 million) this year.
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