Gemadept, a leading port and logistics company in Vietnam, has approved a plan to offer 100.46 million shares to existing shareholders at a cheap price of VND20,000 ($0.85) to raise VND2,009 billion ($85 million) in 2023.
If the issuance is successful, the company's charter capital will increase from VND3,013 billion ($127.6 million) to VND4,018 billion ($170 million).
The company's GMD shares are trading at VND45,550 ($1.93), which means the offering price to its existing shareholders is half the market value.
The company plans to use VND1 trillion ($42.34 million) to increase capital contributions to Gemadept-Terminal Link Cai Mep Terminal JSC to carry out the expansion investment phase 2; VND800 billion ($33.87 million) to increase capital contributions to Dinh Vu Port Investment and Development JSC to implement the second phase of expansion investment and contribute capital to inland waterway port projects; and VND209 billion ($8.87 million) will be invested in purchasing fixed assets to develop the company's business activities.
Gemadept-Terminal Link Cai Mep Terminal JSC phase 2 is located in Phu My town, Ba Ria-Vung Tau province, with an area of 716,693 square meters and total investment capital of VND8,362 billion ($354 million).
Phase 1 was put into operation in January 2021, while legal procedures are being completed to start construction of phase 2 in Q1/2023.
Nam Dinh Vu Port phase 2 is located in Hai Phong city, with a total area of 65.47 hectares and total investment capital of VND6 trillion ($254 million). The actual implementation of phase 2 is expected to be put into operation in Q1/2023, earlier than the original plan.
In the first nine months of the year, the company recorded consolidated net revenue of nearly VND2,850 billion ($120.7 million), up 31% year-on-year. Its pre-tax profit reached VND1,056 billion ($44.7 million), up 83.6%.
By September 30, 2022, total assets had reached VND11,749 billion ($497.2 million), up 9% compared to the beginning of the year. Of which, short-term assets were VND2,069 billion ($87.6 million), up 22% compared to the beginning of the year.