Listed companies reluctant to capital raising projects

VIETNAM, June 20 – A Vietinbank employee counting money at his desk. VNA/VNS Photo Trần Việt

HÀ NỘI — Listed companies are more cautious in their plans to raise capital, as the market is in an unfavorable situation and the government is tightening management of the bond market.

On the stock exchange, many listed companies have postponed their plans to issue stocks, bonds and buy back bonds before maturity.

Specifically, Haxaco (HoSE: HAX) temporarily delayed the plan to offer 49.5 million shares to existing shareholders because market movements were not positive, affecting the interests of the company and its shareholders.

In the market, HAX shares were trading at 18,800 VNĐ ($0.81 per share) as of 10:05 a.m. local time on Friday, down 52.4% from the high reached on March 28.

Earlier, at the 2022 shareholders’ meeting, he approved a plan to offer shares to existing shareholders to raise VNĐ594.2 billion.

At the end of March 2021, Haxaco had 582.4 billion VNĐ in cash and short-term financial investments, representing 39.7% of total assets, an increase of 494.8 billion VNĐ compared to the beginning of the year .

The company’s debt and convertible bonds increased by VN290.7 billion to VN486.4 billion, or 33.1% of total equity. At the beginning of the year, the amount represented 15.3 percent.

During this time, its stocks decreased by 271.2 billion VNĐ to reach 310 billion VNĐ.

Thus, Haxaco’s cash increased mainly thanks to the advance of debt and the decrease in inventories.

Recently, Việt Tiến Sơn Real Estate Holding Company (HNX: AAV) accepted the bond issuance cancellation plan approved on May 11.

The total value of the bond is VNĐ 65 billion, with a term of 3 years, to complete the capital of the Residential Area Project at East of Yết Kiêu Street, Chí Linh City, Hải Province Dương.

In the first quarter of this year, the company holds only 3.7 billion VNĐ in cash, which is 0.4% of total assets.

Clearly, corporate bond issuance activities stagnated after the Tân Hoàng Minh group scandal.

SSI Research said that in the first quarter of 2022, the total amount of corporate bonds issued reached VN61.9 trillion, up 34% from last year, most of which came from real estate companies. , with 38.2 trillion NV, or 62 percent.

But in April, the volume of bonds issued fell sharply. As a result, real estate companies only issued VNĐ820 billion in bonds, compared to a monthly average in 2021 of VNĐ26 trillion.

In addition, the volume of bond redemptions before maturity in April was VN11.9 trillion, almost equal to the redemption volume of the entire first quarter of 2022.

BNB Investment Corporation (HoSE: BNB) has just bought back 50 billion VNĐ of bonds issued in June 2021. The execution period was from May 9 to May 12.

As of March 31, the BNB held only VNĐ80.3 billion in cash, or 1.4% of its total assets. Buying back bonds before maturity has reduced corporate debt but at the same time is shrinking corporate cash.

NBB implements many large real estate projects with investment capital of hundreds of billions of dong, such as Sơn Tinh residential area in Quảng Ngãi province with investment of 506.3 billion VNĐ; Delagi luxury complex combined with a residential area – a project worth VNĐ 402.9 billion; NBB Garden III (VNĐ815.1 billion VND); and NBB II (774.4 billion VNĐ).

Meanwhile, Gelex (HoSE: GEX) announced a plan to buy back three batches of bonds issued on April 15, 2020, May 13, 2020 and December 31, 2021. All are 3-year bonds, with a nominal price total of VNĐ1 0.2 trillion. The redemption date was June 8 to June 17.

Previously, on May 19, Gelex bought back a batch of bonds worth 300 billion VNĐ.

Within a month, the company organized four rounds of bond buybacks with a total value of 1.5 trillion VNĐ.

With a company holding almost VN14.2 trillion in cash and financial investments, representing 23% of total assets like Gelex, buying back VN1.5 trillion of bonds before maturity has little impact. on the source of capital, while helping the debt the ratio to total assets improves compared to the previous period.

For other companies, the postponement of raising new capital plans can mean financial hardship and the postponement or small size of new capital projects. VNS

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