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Minh Phu (MPC) to pay dividend by stock to boost charter capital
Minh Phu Seafood Corporation (MPC) has decided to pay dividend by stock despite shareholders' request for cash to boost charter capital.
At the shareholders' meeting took place on March 9, shareholders proposed to pay dividends in cash instead of stocks. However, Le Van Quang, MPC’s chairman and general director, said that the company’s charter capital has been at VND700 billion ($31 million) since 2016.
Minh Phu intends to pay dividends by stock and bonus stock for key people in order to raise capital to VND1.4 trillion ($62 million). Thereby, MPC expects to issue 68.4 million shares to pay dividend at the rate of 1:1 and an additional 1.5 million shares as bonus for key people.
Quang also said that MPC’s shares will be listed on the Ho Chi Minh Stock Exchange (HOSE) from June 2018. The company has just been listed on the UPCoM on October 16, 2017.
In order to raise capital, Minh Phu intends to issue 60 million shares for strategic investors. Quang said that several foreign investors are interested in MPC’s public offering, some of whom want to purchase up to 35-65 per cent. The total charter capital is expected to be VND2 trillion ($88.1 million) after the outlined issuances and offerings.
This year, MPC will target to reach $800 million in export-import turnover, 63,000 tonnes of shrimp in gross export volume, VND18.2 trillion ($0.8 billion) in gross revenue, and VND1.1 trillion ($48.5 million) in pre-tax profit.
However, Quang said that Minh Phu will do their utmost to exceed these targets and reach an export turnover of $1 billion. In the first month of this year, MPC recorded a profit of VND40 billion ($1.8 million), which is a positive signal because this company has always been in the red in January.
MPC expects to expand Minh Phu Ca Mau factory by 30,000 tonnes per year in the third quarter of this year. The total investment is VND1 trillion ($44 million), including 30 per cent from MPC and the rest from loans.
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