Pulling up a seat for shares

January 08, 2013 | 11:03

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Vietnam’s biggest listed furniture maker is preparing to issue an additional 19.7 million shares to its existing shareholders.

Truong Thanh Furniture Corp’s issuing price is VND5,000 per share, half the par value of VND10,000 ($0.50). Each holder has the right to buy one share for every two owned.

The purchase deadline for the shareholders to register is January 14, 2013. However, the purchase right is not applied for those shares bought after January 9.

The company’s issuing prospectus said all proceeds – almost VND98.44 billion ($4.73 million) – would be used to buy materials and cover operation costs during the firm’s peak production time January.

Truong Thanh will form a timber venture with Japan’s Oji Paper Company to plant a forest in the central upland province of Dak Lak. The Vietnamese corporation will have a 51 per cent stake in the project after transferring the remaining 49 per cent to the Japanese partner.

Truong Thanh currently performs major production contracts for international buyers IKEA, Ashley, Costco, Lapeyre and Alexander Rose.

Bao Viet Securities is acting as the consultant for this time’s share issuing of Truong Thanh, which is based in southern Binh Duong province.

In related news, Bao Viet Securities Investment Fund has registered to sell almost 3.42 million shares, equivalent to 8.68 per cent of its stake in Truong Thanh, from December 5 to January 3, 2013. In October 2012, the fund registered to unload the shares but could not succeed because of lower-than-expected prices. The shares are currently traded at a little higher than VND5,000 (25 cents) each.