More than 48% of MT Gas’s private offering shares are experiencing a lack of demand

The board of directors at MT Gas Joint Stock Company (UPCoM: MTG) announced that only 4.15 million shares were successfully sold through private placement, which is just under 52% of the initial plan. Furthermore, the process took longer than anticipated.

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Specifically, as of 01/02/2024, 4.15 million shares were distributed at a price of 12,000 dong/share, raising 49.8 billion dong. This increased MTG’s charter capital by an additional 41.5 billion dong (face value) to 104.5 billion dong, equivalent to 10.45 million shares.
The list of investors was announced with two names, including Mr. Nguyen Anh Tu (CEO) who bought 3 million shares, and Mr. Truong Huu Phuoc (Chairman of the Board) who bought 1.15 million shares. As a result, the ownership percentage of these two leaders was increased to 28.71% and 14.91% respectively after the offering period.
List of investors who bought private placement shares of MTG:

Source: MTG
However, compared to the initial plan to sell 8 million shares, there were still 3.85 million shares remaining, accounting for over 48% of the shares that were left unsold. In addition, the offering plan was also delayed.
Specifically, initially, MTG planned to sell 8 million shares from 05-16/01/2024 to 3 individuals, including Mr. Nguyen Anh Tu buying 3 million shares, Ms. Phan Thi Kim Ngan buying 1 million shares, and Mr. Dam The Cong buying 4 million shares. All of these shares would be restricted from transfer for 3 years for strategic investors and 1 year for professional securities investors.
However, on 26/01, MTG announced that it only sold 3 million shares to a single investor. With the remaining shares, MTG continued to distribute 1.15 million shares to Mr. Truong Huu Phuoc from 29/01-02/02/2024, and canceled the offering of 3.85 million shares.
As a result, the actual amount received by MTG of 49.8 billion dong did not meet the set plan of 96 billion dong, which was intended to be used for payment under the liquefied petroleum gas (LPG) buying and selling contract for two equal companies: Family Gas Joint Stock Company (VND 67.2 billion) and An Pha Petroleum Group Joint Stock Company (HOSE: ASP) (VND 28.8 billion).
* MTG completes the private placement of 96 billion dong worth of shares in January 2024

During the offering period, the highest price of MTG’s shares was only 10,100 dong/share, while the normal range was 8,000-9,000 dong/share, significantly lower than the offering price of 12,000 dong/share that MTG intended to set.

MTG stock movement during the offering period

Huy Khai

SOURCEvietstock
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