Hoang Quan Consulting Trading Service Real Estate Corporation (HQC) announced it has selected three strategic investors, all domestic construction companies, for a sale of 50 million shares. The property developer plans to issue 110 million shares to raise its charter capital to VND2 trillion (US$95 million) this year, of which 50 million will be offered to strategic investors in a private placement at the face value of VND10,000 ($0.48) a share.
Bao Linh Housing Development&Construction Investment Joint Stock Company will be offered 10 million shares, while both Indochina Real Estate Development Investment Company Limited and Binh Thuan Construction and House Trading Joint Stock Company will buy 20 million shares each.
The placement will be carried out in the next three months and HQC expects to raise VND500 billion ($24 million) from this issue.
As shares are issued at par value, transfer will be restricted to one year.
In addition, the company will issue 30 million shares to its existing shareholders at the price of VND10,000 per share. Proceeds of these two issues will be put into four apartment construction projects in HCM City.
HQC shares are being traded below par value. The shares hit the ceiling price yesterday at VND7,900 ($0.38) per share.
HQC posted a net profit of just VND6.5 billion ($308,000) in the first half of this year, only half of the same period last year. This number is far below the yearly after-tax profit target of VND150 billion ($7.1 million).