Steel firm (NKG) to sell off treasury shares as price quadruples within one year
Steel firm (NKG) to sell off treasury shares as price quadruples within one year
Nam Kim Steel Jsc plans to sell all 10 million treasury shares it holds, representing 5.81 percent of its capital, after their price quadrupled in less than a year.
A worker is seen next to a steel roll in a factory of Nam Kim Steel. Photo courtesy of Nam Kim Steel.
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The deal will be concluded30 days after the State Securities Commission of Vietnam gives it the green light, the Binh Duong Province-based steelmaker said in a statement.
It had bought its NKG shares in June last year at an average price of VND7,600 ($0.33) per share, and the ticker closed Friday at VND30,550.
The deal could fetch the company a profit of VND230 billion, which it plans to use to fund operations.
The company saw profits rise by nearly eight fold year-on-year in the first quarter to nearly VND319 billion amid surging steel prices.
Nam Kim Steel, established in 2002, exports to 50 markets including Australia, Europe and the U.S.
