Foreign shareholders vetoed Apec Investment’s capital raising plan

By Tran Anh - Jul 10, 2019 | 09:51 AM GMT+7

TheLEADERForeign shareholders at Asia-Pacific Investment JSC have turned down the company’s plan to issue over 20 million shares to existing shareholders, in a bid to power two of its property investments.

Foreign shareholders vetoed Apec Investment’s capital raising plan
Apec Investment targets a net sales of VND923 billion ($40.13 million) and a post-tax profit of VND76 billion ($3.3 million)

According to Nguyen Do Lang, chairman of Apec Investment, at the annual general meeting held in early June, Apec Investment’s foreign shareholders, which account for almost 45 per cent of the company’s holdings, did not approve some of the resolutions relating to the issuances of employee stock ownership plan (ESOP) shares, bonus shares and new shares to existing shareholders.

The board of directors desired to issue some 20 million shares to its existing shareholders, on a price range of VND12,000-15,000 ($0.52-0.65) apiece. The anticipated value of the share issuance was expected to reach VND240.86 billion ($10.47 million), to then be spent on the development of two real estate projects, namely the Golden Place Lang Son and the Aqua Park Bac Giang OCT 5 in the period of 2019-2020.

In addition, these foreign shareholders also rejected Apec Investment’s plan for a private placement of 20 million shares, at the starting price of VND20,000 ($0.87) apiece, in 2019. The total sum of the private placement would be utilised for several real estate investments, including the Royal Park Hue apartment and condotel complex, the Royal Park Thai Nguyen apartment structure, the Aqua Park Bac Giang OCT 8S and the Golden Palace Lang Son in the period of 2019-2020.

At the beginning of June, ASEAN Deep Value Fund bought an additional 14,600 Apec Investment shares, lifting its holdings to 18.85 per cent. Lucerne Enterprise Ltd. is also another large shareholder, owning 20.98 per cent of the company.

While being vetoed to raise fund through the private placement and additional share issuances to existing shareholders, Apec Investment has been agreed by its shareholders to continue issuing a VND500 billion-1trillion ($21.73-43.49 million) worth of bond in 2019.

In 2018, Apec Investment successfully raised VND50 billion ($2.17 million) through an issuance of 5,000 bonds on a maturity of two years and a coupon rate of 11 per cent a year.

Apec Investment achieved a net sales of VND828.459 billion ($36.01 million) last year, an up of almost 199 per cent. Its net operating profit, however, went down by 15.71 per cent on-year, attaining VND64.726 billion ($2.81 million) at the end of 2018. Its post-tax profit also slumped by 42.48 per cent on-year to sit at VND34.787 billion ($1.51 million).

This year, the company targets a net sales of VND923 billion ($40.13 million) and a post-tax profit of VND76 billion ($3.3 million).