PVI Reinsurance to issue 31.6 million shares

The PVI Reinsurance Joint-Stock Corporation (PVIRe), a major reinsurance company in Vietnam, plans to offer 31.6 million shares at VND20,000 ($8.84) each, double its par value, from December 23, 2022 to January 12, 2023.

The offering aims to raise an additional capital of VND632 billion ($26.6 million).

PVIRe, listed on the Hanoi Exchange (HNX) as PRE, closed Monday's session at VND19,700 ($0.83) per share.

Its shareholder structure is very concentrated with parent company PVI Holdings, a subsidiary of state-run Petrovietnam, holding a 73.11% stake and the trading volume of the stock on the HNX is just a few thousand units per session.

Currently, PVIRe's charter capital stands at VND728 billion ($30.65 million), equivalent to 72.8 million outstanding shares. If its latest offering is successful, the corporation's charter capital will increase to VND1,044 billion ($43.95 million).

The corporation has set a five-year (2022-2026) business plan based on an expected charter capital hike before January 1, 2023. Specifically, premium revenues from reinsurance for the whole period is estimated at VND12,140 billion ($511 million) with an average growth of 15% per year.

In the first nine months of the year, PVIRe recorded reinsurance premium revenues of nearly VND1,943 billion ($81.79 million), up 37% year-on-year, while after-tax profits reached VND98 billion ($4.13 million).

By September 30, 2022, PVIRe's total assets were valued at nearly VND5,584 billion ($235 million), up 11% compared to the beginning of the year, with short-term receivables increasing by 89% to nearly VND790 billion ($33.26 million).

Its assets are mainly short-term financial investments of nearly VND1,338 billion ($56.33 million), up 10% compared to the beginning of the year. Meanwhile, reinsurance assets decreased slightly by 4% to VND2,273 billion ($95.69 million).

Notably, the corporation received short-term deposits of VND1,237 billion ($52.07 million) and invested VND122.6 billion ($5.16 million) in bonds.