Investment corp. IPA targets 24% rise in 2024 pre-tax profits, plans rights offering

Vietnamese investment holding company I.P.A Investments Group JSC has set revenue and pre-tax profit targets of VND1.08 trillion ($42.43 million) and VND425 billion ($16.7 million) for 2024, up 211% and 24% year-on-year, respectively.

The targets were announced at the firm’s 2024 AGM held on Thursday.

The firm, featured on the Unlisted Public Company Market (UPCoM) as IPA, said it intended to issue 213.8 million shares at VND10,000 ($0.39) apiece through a rights offering in 2024 or 2025, subject to approval by the State Securities Commission.

IPA expects to earn VND2.31 trillion ($90.75 million) from the offering. It will use VND1.8 trillion ($70.71 million) of the proceeds to contribute capital to its subsidiaries and affiliates such as Post-Telecommunication Joint-Stock Insurance Corporation, I.P.A Securities Investment Fund Management Limited Company, IPA Technology Solution JSC, and Bac Ha Energy JSC.

This year, IPA will continue to develop its ecosystem to achieve long-term goals for its business pillars including environmentally-friendly product distributor IPAM Life, business solution provider IPA SMEs, financial service segment IPA Financial and infrastructure/renewables-focused IPA Green Investment.

Speaking of IPA’s acquisition of a 9.36% stake in Trung Nam Energy Development and Investment Corporation (Trung Nam EDI) for VND850 billion ($33.39 million) in Q1/2024, IPA board member Pham Minh Huong, also chairwoman of securities firm VnDirect, said that the company saw the deal an opportunity to expand further into renewable energy, a sector “of the future.”

Renewable energy has already been an income generator for IPA, enabling investments in other segments, Huong noted.

She also expressed confidence in Trung Nam EDI’s capacity to do well in the market.

On the company’s divestment of a 51.15% stake in South Can Tho Development and Investment JSC to Hai Phong Investment JSC, whose director Pham Thi Men is a former IPA accountant, IPA CEO Mai Huu Dat said it was a normal divestment/investment activity to mobilize capital for other projects.

Huong said that despite its substantial land fund, IPA has prioritized cash flow generating activities and was yet to invest in real estate.

To ensure shareholder benefits, IPA needed to wait for smoother legal conditions and identify promising investment opportunities, she stressed.

IPA chairman Vu Hien noted that real estate investment demanded significant time and capital, citing the example of two building projects in Hanoi and HCMC stuck in legal procedures. However, the firm will keep looking for suitable real estate investment opportunities, he added.