VinGroup to convert international bonds into shares
VinGroup to convert international bonds into shares
Property developer VinGroup will issue an additional 153.3 million shares worth VND153.3 billion (US$7.3 million) to convert international bonds into shares in the last phase.
According to its filing to the State Securities Commission and the HCM City Stock Exchange yesterday, the group's charter capital will increase from VND14.38 trillion (US$681.5 million) to VND14.53 trillion ($688.6 million).
Selling pressure led by bondholders in the past month drove VinGroup's share price down nearly 8 per cent from VND52,000 ($2.46) per share to VND48,000 ($2.27).
As of October 21, foreign investors sold out VinGroup shares for 19 sessions in a row with a total volume of up to 23.8 million shares, valued at VND1.122 trillion ($53.2 million).
VinGroup shares continued to slide yesterday to close at VND48,000 per share with more than 2 million shares traded. The group is the largest listed real estate company in the stock market, with market capitalisation of nearly VND69 trillion ($3.27 billion) as of yesterday.
Early this month, rating agency Fitch Ratings affirmed VinGroup long-term foreign and local currency issuer default ratings (IDR) at ‘B+' with a stable outlook.
Fitch expects Viet Nam's improving economic conditions to accelerate property sales growth. Its new projects, Vinhomes Nguyen Chi Thanh and Vinhomes Tan Cang, will provide the majority of the funding needed for capital expenditure from the latter half of this year.
bizhub
