Vietnam fertilizer major PVFCCo approves massive bonus share issuance

After finalizing the record date for a 15% cash dividend, Petrovietnam Fertilizer and Chemicals Corporation (PVFCCo or Phu My Fertilizer), a subsidiary of state-owned Petrovietnam, will issue bonus shares at a striking rate of 73.74% on August 8.

This marks the company’s first-ever bonus share issuance since it was listed on the Ho Chi Minh Stock Exchange as DPM in 2007.

The firm stated that it has received approval from the State Securities Commission (SSC) regarding the plan to issue bonus shares to increase charter capital from owner’s equity.

Accordingly, PVFCCo has set August 8 as the record date for determining shareholder eligibility to receive bonus shares. The distribution ratio is 73.74%, meaning that for every 100 shares held, shareholders will receive approximately 73.75 new shares.

The issuance will be funded from the development investment fund as recorded in the audited separate financial statements for the year ended December 31, 2024.

It plans to issue 288.6 million new shares, raising its charter capital significantly from VND3,914 billion to VND6,800 billion ($260 million). Previously, the company finalized the list of shareholders eligible for a 15% cash dividend, equivalent to VND1,500 ($0.06) per share. Payment is scheduled for September 3, with a total cash outlay of approximately VND587 billion ($22.45 million).

Performance meets expectations

With both the bonus share issuance and cash dividend, PVFCCo’s total shareholder payout this year reaches 88.7% - the highest ever. This major reward was approved by shareholders at the 2025 AGM in late May.

The capital increase is seen as a strategic move to strengthen financial capacity and support the company’s operational funding needs in the coming period.

This year, the company has outlined an investment plan totaling VND1,040 billion ($39.77 million), more than 50% higher than the 2024 plan. Investments will focus on chemical projects and high-tech ventures, expected to significantly improve competitiveness and support the corporation’s comprehensive development.

To align with its growth strategy, shareholders at the AGM also approved the addition of new business lines, including calcium ion powder production and the wholesale of metals and metal ores.

For 2025, PVFCCo targets a consolidated revenue of VND12,876 billion ($492.36 million) and post-tax profit of VND320 billion ($12.24 million).

In Q1, the company recorded VND4,120 billion ($157.5 million) in revenue and VND211 billion ($8.07 million) in profit, achieving 32% and 66% of the respective revenue and profit targets for the year.

At a recent extraordinary general meeting, company leaders revealed that with business results recorded by the end of May and estimates for the first six months, PVFCCo is confident in meeting its mid-year performance targets, with growth aligned with previously committed goals.

In the stock market, DPM closed Friday at VND38,350 ($1.47) apiece.