Long Sơn PIC to raise capital for new industrial park project

July 13, 2020 - 21:26

Long Sơn PIC will sell 65 million shares to Gelex Energy, a member of the Vietnam Electrical Equipment JSC (Gelex)


The Long Sơn Petroleum Industrial Park in Bà Rịa-Vũng Tàu Province. — Photo longsonpic.vn

HÀ NỘI — Long Sơn Petroleum Industrial Zone Investment JSC (Long Sơn PIC)  will issue a total 82.5 million new shares seeking funding for its project in Bà Rịa-Vũng Tàu Province.

Long Sơn PIC will sell 65 million shares to Gelex Energy, a member of the Vietnam Electrical Equipment JSC (Gelex), and 17.5 million shares to Viglacera Yên Mỹ-Hưng Yên Industrial Zone Development JSC.

The deal is expected to be complete by the end of the year. Long Sơn PIC will increase its total shares to 165.2 million from the current 82.7 million.

Gelex Energy will be the biggest shareholders at Long Sơn PIC with a 48.91 per cent holding.

Gelex and related shareholders have 19.1 million shares or 23.1 per cent of Long Sơn PIC’s capital.

Gelex’s energy arm on June 5 bought more than 15.8 million shares, or a 19.1 per cent stake, in Long Sơn PIC. Gelex previously held 3.3 million shares or 3.95 per cent stake.

The company expects to raise VNĐ825 billion (US$35.68 million) to develop the Long Sơn Industrial Park. The IP project demands total investment of VNĐ29.6 trillion and construction will be carried out in three stages.

Investment for the three stages will be VNĐ11.76 trillion, VNĐ10.45 trillion and VNĐ7.4 trillion, respectively.

Long Sơn PIC wants to raise capital for the project as it now has only VNĐ810.4 billion worth of capital, which is not enough to conduct the project.

The firm needs to increase its capital in the project to minimum 15 per cent.

Long Sơn PIC eyes a four-fold increase of total revenue in 2020, which may reach VNĐ146.2 billion. Post-tax profit is expected to climb to VNĐ28.2 billion from a loss of VNĐ2.1 billion in 2019.

Long Sơn PIC shares (UPCoM: PXL) stood firm at VNĐ11,000 apiece on Monday, having risen total 4.76 per cent since the beginning of July.

Gelex shares (HoSE: GEX) gained 2.2 per cent to close Monday at VNĐ20,500 apiece. The electrical equipment firm’s shares have soared 26.5 per cent since June 29.

If the share issuance completes, Gelex will take one more step to enter the industrial real estate sector.

The Ha Noi-based company has recently offered to buy 95 million shares and raise its ownership to 46.15 per cent at industrial group Viglacera, which owns 5,000 hectares of IPs in the North.

Viglacera’s board of directors on July 7 approved the deal. — VNS