Moc Chau Dairy Cattle Breeding Joint Stock Company (Moc Chau Milk) plans to issue 43.2 million shares to raise charter capital by 65 per cent to VND1.1 trillion (US$47.4 million).
Moc Chau Milk currently has a charter capital of VND668 million.
Of the total shares, some 39.2 million will be sold to the strategic investors for VND30,000 per share, valuing the deal at VND1.17 trillion.
The strategic investors are the Vietnam Dairy Products JSC (Vinamilk) and GTNFoods JSC. The shares cannot be sold for one year from the issuance date.
The dairy firm, based in Son La Province’s Moc Chau District, will issue 3.34 million shares to existing shareholders at a 100:5 ratio.
Shareholders will have the option to buy five new shares for every 100 shares they own at VND20,000 per share.
Moc Chau Milk expects to earn VND67 billion from the share issuance. The leftover shares will be sold to the strategic investors.
In addition, the northern dairy producer plans to issue 668,000 optional ESOP shares to employees at VND10,000 per share to earn VND6.7 billion.
The ESOP shares will be unavailable for trading in one year.
Total revenue of the share issuances is estimated at VND1.25 trillion. Plus the remaining cash, Moc Chau Milk plans to spend VND1.6 trillion on developing a new cattle farm with a capacity of 4,000 cows, upgrading the existing cattle farm’s capacity to 2,000 cows, and buying new liquid milk production line and building a new factory.
The company will also remove some business divisions from the registration, including veterinary, retail, road transportation, material wholesale, house construction and tourism to pave the way to raise foreign capital limit to 100 per cent.
Moc Chau Milk will list its shares on the Ho Chi Minh Stock Exchange in nine months. — VNS
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