Hoang Anh Gia Lai JSC (HAGL) has suspended registration documents for a private placement of shares worth VND1,700 billion ($71.7 million) that it had submitted to the State Securities Commission.
HAGL said that the suspension aimed to adjust its detailed capital use plan to match actual needs and ensure investment efficiency.
On June 10, HAGL had decided to offer 162 million shares at VND10,500 ($0.44) per share, which would have raised VND1,700 billion ($71.7 million) from professional securities investors.
The company planned to use VND500 billion ($21.09 million) to pay the principal on bonds issued December 30, 2016, and another VND500 billion as loans to its subsidiary Hung Thang Loi Gia Lai Co., Ltd.
VND400 billion would be loans to its subsidiary Lo Pang Livestock JSC to invest in fruit-growing projects in the districts of Chu Se, Dak Po, Dak Doa and Chu Prong in Gia Lai province, Central Highlands.
The remaining VND300 billion or so was to be given as loans to its subsidiary Gia Lai Livestock JSC to invest in fruit-growing projects in the districts of Mang Yang and Dak Po in Gia Lai.
HAGL earned net profits of VND781 billion ($33 million) on net revenues of VND2,708 billion ($115 million) in the first eight months of the year. The net profit fulfilled 69% of the company’s 2022 plan.
In January-August, the firm, listed on the Ho Chi Minh City Stock Exchange as HAG, sold 136,075 hogs and 167,280 tons of bananas. The firm is raising 100,000 chickens and plans to introduce its poultry products to the market in November.
It is constructing nine farming areas for 27,000 breeding hogs and 600,000 market hogs.
HAGL is one of Vietnam's leading agricultural producers. HAG shares closed the trading session on September 23 at VND13,900 ($0.59).