Kosy is about to issue nearly 58 million shares, equal to one third of the market price to pay debts and invest in the project
VietReader 19-07-2020, 00:13

In 2018 Kosy has raised VND 625 billion from a private offering, after two years the business continues to want to raise an additional VND 576 billion from shareholders to pay bank loans and invest in three real estate projects.

The Board of Directors of Kosy JSC (Code: KOS) has just announced a resolution to approve a plan to offer more 57.6 million shares to existing shareholders.

Right ratio is 9: 5. Offering price is 10,000 dong / share, only 1/3 of KOS share market price ended July 17. The total offering value is 576 billion dong. If successful issuance, Kosy will increase its charter capital from VND 1,037.5 billion to nearly VND 1,614 billion.

Of which VND 330 billion will be supplemented with capital for three projects: Urban Area (Urban Area) No. 11, Gia Sang Ward, Thai Nguyen City VND 110 billion; VND 100 billion for Kosy Ha Nam urban housing construction project in Duy Hai commune, Duy Tien district and VND 135 billion for new northern urban area, sub-zone IX, Ninh Nhat commune, Ninh Binh city and Ninh commune USA, Hoa Lu district.

Nearly VND 183 billion will be used to pay bank debts and the remaining VND 39 billion will supplement working capital (payment of two contracts between Kosy and Pjica Group JSC).

Kosy is about to issue nearly 58 million shares, equal to one third of the market price to pay debts and invest in the project

Source: Kosy.

Additional shares issued to existing shareholders are freely transferable. The right to buy shares can only be transferred once within the stipulated time.

Regarding the new urban area project No. 11 in Gia Sang ward, which has just been awarded in early May, with a scale of 19 hectares, the total estimated investment is over VND 600 billion.

It is expected that Kosy 11 new urban area project will be started construction in the third quarter of 2020.

Ha Nam Kosy Project, in early 2018, the People’s Committee of Ha Nam Province issued a decision to assign the Kosy Group to make a detailed plan.

The area of the planning study area is about 26.7 hectares, which is the land reserved for urban development according to the Duy Tien urban construction general planning till 2020 and vision to 2030 of Ha Nam province.

And the project in Ninh Binh has a scale of 40.7 hectares, the total investment is expected about 1100 billion. Kosy is expected to start construction in the third quarter of 2020.

Earlier, in July 2018, Kosy issued 62.5 million shares individually at VND 10,000 / share to 6 individual investors and an organization.

In just two years, Kosy has increased “crisis” capital from VND 415 billion to VND 1,614 billion if successfully issued in this phase.

Kosy operates in real estate with projects focusing mainly in Bac Giang, Thai Nguyen, Lao Cai and Lai Chau.

Kosy projects are implemented at the time of issuing the 2019 annual report (Source: Annual report 2019).

In 2020, Kosy sets a plan of VND 1,200 billion in revenue and VND 30 billion in profit before tax; increased by 13% and 15% over the previous year. Quarter I Kosy reached VND 179 billion in revenue and nearly VND 7 billion in profit before tax.

Source: vietnambiz.vn