Saigontel to boost charter capital by $170 mln

Saigon Telecommunications Technology JSC (Saigontel) plans to increase its charter capital by VND3.5-4 trillion ($170 million) in 2023 by issuing shares and taking out loans to implement industrial and urban real estate projects.

In the industrial real estate segment, Saigontel will complete legal procedures, compensation and site clearance for projects like Dai Dong Hoan Son Industrial Park phase 2 in Bac Ninh province; Tan Phu industrial clusters 1 and 2 in Thai Nguyen province; Luong Son Industrial Cluster in Thai Nguyen; a project developing facilities for lease in Danang Hi-tech Park in Danang city; Nam Tan Lap Industrial Park in Long An province; and Tan Tap Industrial Park, also in Long An.

The Luong Son Industrial Cluster may be up for sale by the end of 2023, while the facilities for lease in Danang Hi-Tech Park is expected to go into operation in the third quarter of this year.

The company will also complete legal proceedings for a number of projects including the Hau Nghia township area in Long An and an office and apartment building at 300A-B Nguyen Tat Thanh street, District 4, Ho Chi Minh City.

Regarding the Bau Tram social housing project in Danang, the company has completed construction and will hand it over to customers in the second quarter of 2023.

In the urban real estate segment, Saigontel is expected to record total revenue of VND1.3 trillion ($55.33 million) and after-tax profit of VND120 billion ($5.1 million).

In 2023, Saigontel, listed on the Ho Chi Minh Stock Exchange (HoSE) as SGT, plans to reach revenue of VND2.75 trillion ($117.04 million), up 89% year-on-year, and before-tax profit of VND412 billion ($17.53 million), up 3.8 times.

The company's board of directors has proposed not to pay dividends for 2022, according to documents to be submitted at its annual general meeting of shareholders on April 20 in District 3, Ho Chi Minh City.

At the meeting, the company will seek shareholders' approval to issue 100 million shares via private placement to strategic investors or professional securities investors in 2023, equivalent to 67.6% of its outstanding shares. The offering price is yet to be released.

The proceeds will be used to supplement working capital, restructure loans, increase the scale of operations, and invest in subsidiaries and associates.

As of December 31, 2022, Saigontel's total assets stood at VND5.49 trillion ($233.57 million), up nearly 25% compared to the beginning of the year. Total debt was VND1.91 trillion ($81.08 million), most of which was short-term loans in the form of unsecured loans which accounted for 52% of total liabilities.

The SGT share price hit VND11,850 ($0.5) at Tuesday's close.

HCMC-based Saigontel, which used to be a telecom company, has gradually shifted to an industrial developer with projects nationwide. On November 2, it broke ground on three industrial clusters in the northern province of Thai Nguyen.

Covering almost 75 hectares in Pho Yen town, Tan Phu 1 and Tan Phu 2 industrial clusters have a combined investment of about $21 million, while the 35-hectare Luong Son industrial cluster in Song Cong town will cost more than $12 million.