Đèo Cả to raise over $16.4 million from private placement
Đèo Cả to raise over $16.4 million from private placement
Đèo Cả Transport Infrastructure Investment JSC plans to conduct a private placement for 41.5 million shares to professional investors after getting approval from its Board of Directors.
Construction site of the Quảng Ngãi - Hoài Nhơn project. — Photo deoca.vn |
The issuance price will be set at VNĐ10,000 per share (US$0.39). These shares will be restricted from transfer for one year following the completion of the sale.
The issuance is expected to occur between 2024 and 2025, after completing the necessary registration procedures with regulatory authorities.
The company, which operates in the transport infrastructure sector, expects to raise around VNĐ415 billion ($16.4 million) from this move, of which VNĐ145 billion will be contributed to Đồng Đăng - Trà Lĩnh Expressway JSC, the entity responsible for developing the Đồng Đăng - Trà Lĩnh expressway project.
The remaining capital will be used to fund this project through lending, business cooperation or other methods.
If the issuance is successful, HHV’s charter capital will increase from VNĐ4,322 billion to VNĐ4,737 billion.
In September, Đèo Cả also passed a resolution to collaborate with Đồng Đăng - Trà Lĩnh Expressway JSC to jointly carry out the Đồng Đăng (Lạng Sơn Province) - Trà Lĩnh (Cao Bằng Province) expressway project.
Under the agreement, the company committed up to VNĐ600 billion to the project, with a final deadline of December 31, 2026, or until the committed capital is fully disbursed, whichever comes first.
In the third quarter, its net revenue reached VNĐ794 billion, an increase of 17 per cent year-on-year, while profit after tax rose 5.1 per cent to VNĐ123 billion.
In the first nine months of 2024, the company achieved total consolidated revenue of nearly VNĐ2.3 trillion, up 25.9 per cent year-on-year, with profit after tax reaching VNĐ367 billion, an increase of 18.8 per cent.
These figures represent 73 per cent of the revenue target and 91 per cent of the profit goal for 2024.
Revenue from BOT toll collection was the main driver, accounting for 63 per cent of total revenue and reaching over VNĐ1.4 trillion in the first nine months of the year, up 21 per cent over last year.
This increase is attributed to economic recovery and heightened transport demand, as reflected in General Statistics Office data showing a nine per cent rise in passenger transport and a 12.6 per cent rise in freight transport compared to the previous year.
Additionally, Đèo Cả's construction segment also showed positive results. Its revenue was nearly VNĐ774 billion in nine months, up 29 per cent year-on-year.
Major projects like the Quảng Ngãi - Hoài Nhơn, Bình Định coastal road and the coastal route connecting Liên Chiểu Port - Đà Nẵng significantly contributed to this growth.
