Tracodi to issue 30.5 mln bonus shares to shareholders

Transport and Industry Development Investment JSC (Tracodi), a construction-infrastructure subsidiary of Bamboo Capital Group, has said it will issue 30.53 million bonus shares to existing shareholders this year.

The shares will be issued at a 100:10 ratio, meaning that shareholders owning 100 shares will receive 10 new shares.

The date of record to determine eligibility of those receiving bonus shares is July 9, 2024.

The bonus shares will have a total par value of VND305.3 billion ($12 million). The capital backing the issuance is the accumulated share surplus based on 2023 audited financial statements. In addition to the bonus share issuance this year, Tracodi also plans to offer 170 million shares in a private placement at VND10,000 apiece.

The issuance is aimed at improving the firm’s capital capacity and make it commensurate with its total asset and supplement capital to serve production and business activities.

On May 23, Tracodi had completed the issuance of 22.6 million shares to pay dividend to shareholders at a rate of 8% (shareholders owning 100 shares received eight new shares).

Before all the three abovementioned issuances, Tracodi's charter capital was VND2,826 billion ($111 million). Once they are done, its charter capital is set to increase to VND5,058 billion.

Tracodi also plans to change its name to Tracodi Construction Group Joint Stock Company this September. It said the new name is in line with the corporate governance model that it is shifting to. The new name will also highlight the company's core business of construction, and promotes the strengths of the Tracodi brand, which has a 34-year history.

This year, Tracodi will focus resources on implementing real estate projects of Bamboo Capital Group including the King Crown Infinity, Malibu Hoi An and Hoian d'Or.

It will also speed up the implementation of transport infrastructure projects like the Phan Thiet airport; component project No. 4 of the phase 1 of Chau Doc-Can Tho-Soc Trang Expressway; a road project connecting old National Highway No. 3 to Vo Nguyen Giap avenue in Hanoi; the Duc Thinh residential project in Bac Giang province; the upgrade and expansion of roads DT830 and DT824 from An Thanh bridge to Duc Hoa town in Long An province.

Tracodi said it was constantly looking for new opportunities through participating in the bidding for new projects, conduct M&As of potential construction material mines.

For the 2024-2028 five-year period, Tracodi has targeted an annual average revenue growth of 12% for revenues of VND3,816 billion ($150 million) in 2028.

The firm has also targeted an after-tax profit reaching VND348 billion ($13.67 million) in 2028 and owner’s equity of VND6,438 billion the same year. Its total asset value is projected at VND13,130 billion.

The firm has been implementing several projects in cooperation with a host of reputable domestic and foreign construction and infrastructure companies including Design and Construction Joint Stock Company No.1 and China Railway Group Limited (CREC).

The firm said strategic cooperation with reputable, experienced and potential partners will help both sides take advantage of each other's strengths, jointly seize breakthrough opportunities in the context of favorable macro factors and the construction market conditions.