City Auto (CTF) gears up for share issuance
City Auto (CTF) gears up for share issuance
Automobile distributor City Auto Joint Stock Company will finalise its list of shareholders to receive 21.6 million shares as it wants to increase charter capital.
The share issuance ratio is 1:1.2, meaning each shareholder is eligible to buy 120 new shares for every 100 shares they own.
The share issuance price is VND10,000 (US$0.44) per share and the company expects to raise VND216 billion ($9.6 million) from the deal to invest in new projects and boost working capital.
Its charter capital is expected to touch VND396 billion from the current VND180 billion.
The share issuance was approved by shareholders in June.
City Auto JSC is listing 18 million shares on the Ho Chi Minh Stock Exchange (HoSE) as CTF. Its shares jumped 5.5 per cent to close Thursday at VND24,800 per share.
In the third quarter, the company’s revenue fell 12 per cent year on year to VND777 billion but post-tax profit gained 25 times year on year to VND12.7 billion.
After nine months, City Auto recorded VND2.12 trillion in net revenue, down 18 per cent year on year. Its post-tax profit in nine months four-folded last year’s figure to VND20.5 billion, 70 per cent of the firm’s full-year forecast.
