Money collected from shares issuance by the Dat Xanh Group will be used to develop the Nam Rạch Chiếc Residential and Resettlement Project. — Photo courtesy of Đất Xanh Group

With the issuing price of VNĐ100,000 (US$4.3) per share, the corporation expects to collect over VNĐ874 billion through this share issuance.

This amount of money will be used to develop Nam Rạch Chiếc Residential and Resettlement Project (Gem Riverside project) from this year-end to 2021. The project has a total investment of approximately VNĐ5.46 trillion.

The list of shareholders will close on August 14.

Đất Xanh has also announced that it will issue more than 76.9 million shares to pay 2018 dividends for shareholders at the rate of 22 per cent. Shareholders owning 100 shares will receive 22 new shares.

Value issued by par value is over VNĐ769 billion.

In addition, the group also plans to issue 6 million employee stock ownership plan (ESOP) shares to employees with the issue rate of 1.72 per cent. Value issued by par value is VNĐ60 billion.

The subjects of issuance are 199 employees who meet the company's standards.

Profit transfer

The company's 2018 financial statement showed that its accumulated after-tax profit in 2018 was more than VNĐ703 billion. The cumulative after-tax profit of the parent company until the end of 2018 was VNĐ1.455 trillion.

Thus, in order to issue 76.9 million shares to pay dividends and 6 million ESOP shares, corresponding to the total issuing value of more than VNĐ829.6 billion, Đất Xanh Group has to transfer profits from the subsidiaries to the parent company, with a transfer amount of more than VNĐ126 billion. — VNS