Vietnam conglomerate Bamboo Capital to issue 80 mln bonus shares

Vietnamese conglomerate Bamboo Capital Group, listed on the Ho Chi Minh Stock Exchange (HoSE) as BCG, will issue 80 million bonus shares this year at a 100:10 ratio.

The issue will happen subject to approval by the State Securities Commission (SSC), Vietnam’s stock market watchdog.

In a filing with the HoSE last week, BCG said the total expected issuance value, based on par value, would be VND800.2 billion ($31.5 million). Accumulated surplus capital, per independently audited financial statements for 2023, will be used for the issuance.

The issuance will help BCG raise its registered capital from VND8,000 billion ($314.7 million) to VND8,800 billion. In June, BCG issued 266.7 million shares, raising its charter capital from VND5,335 billion to VND8,001 trillion and gaining VND2,667 billion.

The successful issuances have helped BCG access supplementary funds to serve production and business activities while making its charter capital commensurate with current asset value and restructuring its debt-to-equity ratio.

They are also expected to help BCG deliver long-term benefits to shareholders as it strives to speed up mega projects.

Recently, BCG’s energy arm said it was entering the waste-to-power sector with the acquisition of Ho Chi Minh City-based waste treatment firm Tam Sinh Nghia Investment Development JSC.

In 2024-2025, BCG Energy will build its first waste-to-power plant in HCMC within the Tay Bac solid waste treatment complex in Cu Chi district.

The 20-hectare factory, with an investment of VND5,000 billion ($205.4 million), will be able to process 2,000 tons of waste daily to generate 40 MW. In subsequent phases, the factory can expand its daily capacity to 5,200 tons for generating 130 MW.

BCG Energy is also pursuing wind power projects totalling one GW under the country’s Power Development Plan VIII (PDP VIII).

The firm has struck cooperation agreements with global energy giants including SP Group, Sembcorp, SK Group, Hanwha Group, and Leader Energy Group for many projects in Vietnam.

Last month, BCG Energy teamed up with two South Korean firms – SK Ecoplant and Sudokwon Landfill Site Management Corp (SLC) – to implement waste-to-power projects in Vietnam. The three firms will focus on projects in the southern region, particularly the provinces of Long An and Kien Giang, facilitating environmental protection and sustainable development.

Also in June, BCG Energy received a license from the Vietnam Securities Depository (VSD) to register and deposit 730 million shares with it under the BGE code. This is a prerequisite to its planned listing on the Unlisted Public Company Market (UPCoM) later this month.

Another significant step taken last month was Tracodi, a construction-infrastructure subsidiary of BCG, signing a memorandum of understanding with China’s state-owned China Railway Group Limited (CREC) to cooperate with each other in developing industrial parks, social housing, and transport infrastructure in Vietnam.

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

According to documents prepared for its April 27 AGM, BCG has targeted after-tax profits of VND951.7 billion ($37.4 million) on revenues of VND6,102.5 billion in 2024, up 556% and 152% year-on-year, respectively.

In its 2024-2028 five-year plan, BCG targets average revenue growth rate of 50% per year, reaching net revenues of VND30,475 billion and post-tax profits of VND4,536 billion ($178.44 million) in 2028. By then, BCG plans to pay an average dividend of 15% in cash or shares to its shareholders.