The Vietnam Exhibition Fair Centre JSC (VEFAC), a subsidiary of Vingroup, has announced its plan to increase its chartered capital from $72.6 million to $604 million via the issuance of 1.2 million additional shares to its existing shareholders.
Nearly half of the total $532 million raised will be used for the construction of the Vietnam Exhibition Fair Centre alone in the northern district of Dong Anh in Hanoi.
Apart from the exhibition fair centre, the funds will also be utilised to finance the firm’s commercial and residential complex on 148 Giang Vo street and the South Thang Long Urban Complex in Me Tri, Hanoi.
The existing national exhibition centre located on Giang Vo street would then be rebuilt into a shopping mall and residential housing project.
VEFAC was equitised in 2015. The state current holds approximately 10 per cent of the firm’s stakes while over 83 per cent belongs to Vingroup.
Last year, VEFAC reported VND15,1 billion ($656,520) in revenue and pre-tax profit of VND41.5 billion ($1.8 million).
VEFAC expects to complete all legal procedures this year to carry out construction of the three projects. With its business core of organising traditional exhibition fairs, the firm projects its revenue to reach VND17,4 trillion ($756,520) and profit at VND59 billion ($2.56 million) in this year.