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|Biwase expects to auction 37.5 million shares|
The Board of Directors of Biwase has approved the initial price of VND25,500 ($1.11) apiece for the auction of 37.5 million shares. This offered price is calculated based on the recent transaction sessions between July 21 and August 31.
Biwase expects to acquire at least VND956.3 billion ($41.6 million) from the sale and increase its charter capital from VND1.5 trillion ($65.2 million) to VND1.87 trillion ($81.3 million).
At present, the foreign ownership ratio stands at 10 per cent and is offered to increase to 49 per cent.
Becamex IDC currently owns a 25 per cent stake at Biwase, while Thu Dau Mot Water JSC owns 38.5 per cent.
Right after Biwase issued the notification, Thu Dau Mot announced that it will buy additional shares of Biwase to maintain its 38.5 per cent ownership. With 150 million shares listed, Thu Dau Mot will have to buy an additonal 14.4 million shares.
According to the plan, the capital mobilised from the auction is expected to pay bonds, offset the counterpart funds for projects related to water provision, waste incineration, and compost fertiliser manufacturing, among others.
In the first half of this year, Biwase reported VND1.42 trillion ($61.74 million) in net revenue and VND249 billion ($10.83 million) in after-tax profit, up 25.8 and 20 per cent, respectively.
The company targets to acquire VND3.15 trillion ($136.96 million) in net revenue, up 25 per cent on-year and VND470 billion ($20.43 million) in after-tax profit this year.
The company completed 45 per cent of its full-year revenue target and 53 per cent of profit target.