HCM City Infrastructure Investment Company (CII) has announced a change to its plan to issue additional shares in an effort to raise capital.
Under the changed plan, CII will continue to offer about 25 million shares to existing shareholders at a ratio of 2:1. However, at the suggestion of the State Securities Commission, the shares sold will be rounded off to whole units instead of batches of 10.
CII was also planning an additional stock split of another 25 million shares, to be offered sometime next year to existing shareholders at a ratio of 3:1. The offer would be made at a price of VND30,000 per share so long as the market price of the shares remains above that level.
After the issue, the company would increase its charter capital from VND503 billion ($27.2 million) to over VND1 trillion ($54.1 million).
CII shares yesterday closed at VND56,500 ($3.1) per share on the HCM City Stock Exchange.
Company CEO Nguyen Phuoc Thanh said capital raised through the share issues would also be used for major projects in 2010 which cost more than VND2.7 trillion ($145.9 million).
In the first nine months of 2009, the infrastructure developer earned a net profit of VND217.2 billion ($11.7 million), a year-on-year increase of 91.3 percent and exceeding the target previously set for the entire year by 41 percent.
The company projects profits of VND310 billion ($16.8 million) in 2009 and VND510 billion ($27.6 million) in 2010.
Dividend payout on 2009 profits was also adjusted from 16 per cent to 20 percent.