CMC Corporation plans to issue about 8.5 million additional shares this year in order to comply with legal provisions requiring shares representing the entirety of a publicly-traded firm's registered capital be listed on the stock exchange.
The IT firm made its listing on the HCM City Stock Exchange in January, issuing 63.5 million shares. At the same time, the company had charter capital of VND720 billion (US$37.9 million), equivalent to 72 million shares at the same price.
The Securities Law regulates that a listed company must list shares on the stock exchange representing all of its equity value.
CMC had anticipated that it would make a private offer of the remaining shares to strategic partners, but the failure to strike a deal that has left the company out of compliance with the law. The corporation expected to implement this private offer in the fourth quarter of this year, or early next year.
Last month, the corporation inked a strategic deal with global software giant SAP, expected to assist CMC to expand and develop targeting the large business segment in Viet Nam.
CMC was also planning to issue an additional 3.1 million shares to staff under its Stock Ownership Plan for Employees between now and December 2013. Capital raised would be allocated to developing core business lines in IT, telecommunications and e-commerce, as well as to fund an increase in charter capital to VND751 billion ($39.5 million).
CMC has projected earnings this year of VND5 trillion ($263.1 million), an increase of 35 per cent over last year, and net profits of VND156.5 billion ($8.2 million), an increase of 27 per cent.