Deoca Group to raise charter capital to over $247m

June 27, 2024 - 18:07
The plan was approved by its general meeting of shareholders on June 26 and is expected to be implemented from now until 2025
A worker operating a machine at the construction site of the Khe Nét railway tunnel. — Photo

HÀ NỘI — Deoca Group announced a plan to issue over 210 million shares, equivalent to 50 per cent of the total issued, to existing shareholders to increase its capital to over VNĐ6.3 trillion (US$247.4 million) from VNĐ4.2 trillion.

The plan was approved by its general meeting of shareholders on June 26 and is expected to be implemented over 2024 - 2025, in accordance with the project's deployment timeline.

Deoca Group also reached a consensus on its ambitious business plan for 2024.

The proposal sets a target of nearly VNĐ9 trillion (US$352 million) in revenues, showcasing a remarkable growth of over 35 per cent, while aiming for profit after tax of VNĐ733 billion, up over 14 per cent year-on-year.

The company achieved outstanding results in the first quarter of 2024, with a revenue of VNĐ1.75 trillion, marking an impressive growth of 121.52 per cent.

It also recorded a profit after tax of VNĐ169 billion, a growth of 39.67 per cent from last year.

In terms of investment activities, Deoca Group recently completed the construction of the Cam Lâm - Vĩnh Hảo expressway, involving a substantial investment of over VNĐ8.9 trillion.

The expressway successfully opened at the end of April.

It is also actively progressing with two ongoing projects. The Đồng Đăng - Trà Lĩnh expressway, Phase 1, with a total investment exceeding VNĐ14.3 trillion and the Hữu Nghị - Chi Lăng expressway with a total investment surpassing VNĐ11 trillion.

Deoca Group's leadership has confirmed their ongoing research into investment projects, including Tân Phú - Bảo Lộc, HCM City - Chơn Thành, Belt Road 4 in Bình Dương Province and HCM City - Trung Lương - Mỹ Thuận (Phase 2).

These projects amount to a total investment of nearly VNĐ80 trillion.

It is also scrutinising the Vũng Áng - Mụ Giạ section of the Việt Nam-Laos railway project, valued at over VNĐ47.6 trillion.

The company successfully completed multiple projects in 2023, such as Thung Thi overpass on the Mai Sơn - Expressway No 45, Trường Vinh Tunnel on the Nghi Sơn - Diễn Châu Expressway, Mỹ Thuận 2 Bridge, Mỹ Thuận - Cần Thơ Expressway and the expansion of Prenn Pass. Its total involvement in these projects exceeded VNĐ6.1 trillion.

Deoca Group continues to undertake significant construction works on the North-South Expressway Phase 2, including the Quảng Ngãi - Hoài Nhơn Expressway, with a total investment of over VNĐ20.4 trillion.

The company is also actively involved in the construction of Chí Thạnh - Vân Phong, Tuyên Quang - Hà Giang, Khánh Hòa - Buôn Ma Thuột expressways, the Chơn Thành - Đức Hòa section of the Hồ Chí Minh highway, Belt Road 3 in HCM City, Tan Vạn interchange, two connecting roads to Long Thành International Airport as part of the Long Thành International Airport project and the Khe Nét railway tunnel on the Hà Nội - HCM City railway line.

The total value of these projects is nearly VNĐ15 trillion.

Deoca Group places great importance on adopting innovative approaches to participate in these investments, utilising the PPP++ model to diversify funding sources, enhance efficiency and mitigate risks.

This includes utilising budget funds (P1++), equity capital from primary and secondary investors (P2++), and funds mobilised from credit organisations, business partnerships, bonds and other sources (P3++).

The company added that it recognises the significance of the contribution of the work force in their sustainable development strategy.

Adding that the board of directors plans to seek shareholders' written approval to list the company on the stock exchange within the next five years. — VNS