The facility of Moc Chau Milk in Son La province's Moc Chau district (Photo: VNA) Moc Chau Milk currently has a charter capital of 668 million VND.
Of the total shares, some 39.2 million will be sold to the strategic investors for 30,000 VND per share, valuing the deal at 1.17 trillion VND.
The strategic investors are the Vietnam Dairy Products JSC (Vinamilk) and GTNFoods JSC. The shares cannot be sold for one year from the issuance date.
The dairy firm, based in Sơn La province’s Moc Chau district, will issue 3.34 million shares to existing shareholders at a 100:5 ratio.
Shareholders will have the option to buy five new shares for every 100 shares they own at 20,000 VND per share.
Moc Chau Milk expects to earn 67 billion VND from the share issuance. The leftover shares will be sold to the strategic investors.
In addition, the northern dairy producer plans to issue 668,000 optional ESOP shares to employees at 10,000 VND per share to earn 6.7 billion VND.
The ESOP shares will be unavailable for trading in one year.
Total revenue of the share issuances is estimated at 1.25 trillion VND. Plus the remaining cash, Moc Chau Milk plans to spend 1.6 trillion VND on developing a new cattle farm with a capacity of 4,000 cows, upgrading the existing cattle farm’s capacity to 2,000 cows, and buying new liquid milk production line and building a new factory.
The company will also remove some business divisions from the registration, including veterinary, retail, road transportation, material wholesale, house construction and tourism to pave the way to raise foreign capital limit to 100 percent.
Moc Chau Milk will list its shares on the Ho Chi Minh Stock Exchange in nine months./.
