Petrosetco plans 106.7 million share rights issue

Petrosetco plans 106.7 million share rights issue

If fully subscribed, the company would raise nearly VNĐ1.1 trillion and increase charter capital to more than VNĐ2.6 trillion.

Petrosetco's tower in HCM City. — Photo petrosetco.com.vn

Petrovietnam General Services Corporation (Petrosetco) plans a major equity raise and a VNĐ2.2 trillion (US$83 million) capital injection into three newly formed infrastructure joint ventures with Gelex Infra, the logistics and trading company said in documents filed for its 2026 annual general meeting.

At the general meeting of shareholders scheduled for April 24 at GEM Centre in Hồ Chí Minh City, Petrosetco will ask shareholders to approve three capital-increase proposals: a stock dividend, bonus shares, and a rights offering to existing shareholders.

The company proposes issuing 5.336 million shares (5 per cent) as a dividend for 2025 and 42.668 million shares (40 per cent) as bonus shares from equity, which together would lift charter capital to more than VNĐ1.5 trillion once completed from the second to the third quarter of 2026.

Separately, Petrosetco plans to offer 106.7 million shares to existing shareholders, equivalent to 100 per cent of its current outstanding shares, at VNĐ10,000 per share.

If fully subscribed, the company would raise nearly VNĐ1.1 trillion and increase charter capital to more than VNĐ2.6 trillion.

Petrosetco said the capital-raising measures are driven by expanding business scale and rising competition, which have created larger funding needs for imports, inventory, distribution network expansion, warehousing investments and property development.

The company also flagged a strategic push into construction infrastructure and real estate businesses that will require significant financial resources.

The firm, with current charter capital of over VNĐ1 trillion, said its own equity is insufficient to meet near-term development needs and that the planned capital increases are necessary to boost financial capacity and create headroom for business expansion.

Petrosetco said the proceeds will be used for financial restructuring and to fund projects of the company and its subsidiaries or associates and other projects as appropriate.

It also intends to inject additional capital totalling VNĐ2.2 trillion into three infrastructure joint ventures in which it already holds stakes: Gelex Bac Saigon 1 Infrastructure Co., Ltd. (51 per cent), Gelex Bac Saigon 2 Infrastructure Investment Co., Ltd. (41 per cent) and Gelex West City Infrastructure Co., Ltd. (41 per cent).

On the stock market, shares of the company (PET) traded at VNĐ48,400 each at 2pm on April 2, down 4.34 per cent from the previous session. 

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