Bamboo Capital changes name, promotes group model operations

Bamboo Capital Group JSC on Monday officially announced it would use the new name Bamboo Capital Group.

According to the company, the change aims to facilitate the process of connecting with partners and customers while transacting and doing business in a new period of development.

The new name is expected to make it more favorable in seeking investment opportunities and expanding markets toward sustainable future development.

Since its restructuring in 2019, Bamboo Capital (BCG) has operated under the model of a multi-sector private corporation. Bamboo Capital plays the role of a parent company, below which are subsidiaries in charge of five business lines including: renewable energy, real estate, construction-infrastructure, manufacturing, financial, and insurance services.

As of June 30, 2022, Bamboo Capital had more than 50 member companies. "The name change is a necessary step to elevate its position, accurately reflecting its size, nature and operational structure," the group stated in a release.

Regarding business segments, Bamboo Capital has identified three strategic spearheads including renewable energy (BCG Energy), real estate (BCG Land), and financial services and insurance (BCG Financial and AAA Insurance).

Bamboo Capital Group is actively completing the necessary procedures for the IPO of BCG Land and BCG Energy in late 2022 or early 2023.

2022 is expected to be a booming year for BCG Land with a revenue and after-tax profit of about VND5,000-5,400 billion and VND1,400 billion ($59.45 million), mainly thanks to the contribution of the Malibu Hoi An and Hoi An d'Or resort projects.

Meanwhile, with about 600 megawatts of solar power already in commercial operation, BCG Energy is enjoying a stable source of income. In 2022, BCG Energy sets a revenue target and after-tax profit plan of VND1,660 billion and VND997 billion ($42.34 million), respectively.

Bamboo Capital will issue more than 266.7 million shares to existing shareholders at a ratio of 2:1. The expected offering price is VND10,000 ($0.43) per share, with total proceeds exceeding VND2,667 billion ($113.35 million), according to the plan approved by the group's 2022 annual general meeting.

Besides, Bamboo Capital Group also plans to issue 250 million shares to public investors in the form of a share auction. The starting price is at least 70% the average reference price of BCG shares in 30 consecutive trading days on the stock market up to the date the board of directors issues a decision on the offering.

At the end of August, Bamboo Capital had finished issuing 25 million shares to pay dividends in 2021 and five million shares under the Employee Stock Ownership Plan (ESOP) program for 2022. The company on September 22 plans to continue spending VND250 billion ($10.63 million) to pay cash dividends to shareholders.

After the issuance of shares to pay dividends in 2021, the issuance of bonus shares under the ESOP program and the above two issuances, Bamboo Capital's charter capital will increase from VND5,033 billion ($213.93 million) to about VND10,500 billion ($446.30 million).

The primary objective of capital mobilization is for the group to have more resources to generate higher revenue and profit, and to create greater value for shareholders, Bamboo Capital said.

"If only considering the current operating projects, the group's capital is just enough enough. However, in order to seize greater opportunities from the market and bring into full play its potential, Bamboo Capital needs to continue improving its financial capacity," the group stated.

Bamboo Capital this year sets a net revenue target and after-tax profit plan of VND7,250 billion and VND2,200 billion ($93.42 million), up 280% and up 220% year-on-year, respectively.

In the first six months of 2022, Bamboo Capital's revenue and after-tax profit reached VND2,133.9 billion ($90.90 million) and VND877.1 billion ($37.36 million).

The group is confident in its business plan since the year-end is the ideal time to record large revenues from real estate projects.