Image shows a Bamboo aircraft. FLC Group has cancelled a plan to issue 300 million shares, which aimed to provide extra funding for its aviation unit Bamboo Airways. — Photo flc.vn

HÀ NỘI — Property developer FLC Group has cancelled the issuance of 300 million shares for current shareholders.

Market conditions were unfavourable, leading to the company’s decision, according to FLC Group.

The list of beneficiary shareholders, which was finalised on October 24, has also been revoked.

FLC Group shares tumbled 6.9 per cent on Thursday to hit the floor price of VNĐ4,750 following the news.

The shares had gained as much as 55 per cent since October 11.

In mid October, FLC Group announced it would sell nearly 300 million shares to current shareholders at a rate of 42.2 per cent and a price of VNĐ10,000 per share.

That meant every shareholder would have received an extra 422 shares for each 1,000 shares they held.

If the deal had been success, FLC Group would have received nearly VNĐ3 trillion (US$132.7 million) to raise its charter capital to VNĐ10.1 trillion.

Income from the deal would have been used to provide additional financing for the group’s working capital and real estate projects, and increased the charter capital of aviation firm Bamboo Airways by VNĐ700 billion to VNĐ2 trillion.

FLC plans to launch an IPO for Bamboo Airways in the first quarter of 2020, which will value the aviation firm at $1 billion.

The aviation unit would first list 400 million shares on the Hồ Chí Minh Stock Exchange or the Hà Nội Stock Exchange, company officers told Bloomberg.

FLC expected the IPO price for Bamboo Airways would be VNĐ50,000-60,000. The deal could bring FLC Group about $100 million.

In the third quarter of 2019, FLC reported a 120 per cent annual increase in its net revenue, which reached VNĐ5.19 trillion.

But sales cost soared 138 per cent year on year to VNĐ5.13 trillion, narrowing gross profit by 72.6 per cent yearly to VNĐ58 billion.

Financial income jumped 160 per cent to VNĐ466 billion, raising the firm's profits from financial investments by 2.7 times from the previous year.

However, post-tax profit dropped nearly 23 per cent to VNĐ64.4 billion.

After nine months, net revenue was up nearly 50 per cent year on year to VNĐ11.4 trillion but net profit fell 52.4 per cent yearly to VNĐ88.5 billion. — VNS