Nam Kim Steel (NKG) Proposes Share Issuance, Elects New Board Members
Nam Kim Steel Corporation (NKG) has released supplementary materials for its 2024 Annual Shareholders’ Meeting scheduled for April 26 in Ho Chi Minh City.
The additions include a list of candidates for the election of additional members to the Board of Directors and Supervisory Board for the 2020-2025 term. Notably, Nguyen Trung Tin (born 1979) has been nominated for the Board of Directors, while Dang Van Hoa (born 1990) has been nominated for the Supervisory Board.
Tin holds an expertise in information technology. He currently serves as the Chairman of the Board of Directors of TT Capital Investment JSC and the General Director of Phuc Loc Khang Investment JSC. Previously, he was associated with HAX Green Car Services JSC for 10 years (2002-2012) and held the positions of Vice Chairman and Deputy General Director at An Gia Investment and Real Estate Development JSC (2012-2021).
Tin’s nomination to the Board of Directors of Nam Kim Steel follows the resignation of Nguyen Ngoc Y Nhi, who stepped down as a member of the Board for the 2020-2025 term due to personal reasons earlier this month.
Dang Van Hoa, who holds a bachelor’s degree in business administration, currently serves as the Head of Planning and Supply at Nam Kim Steel. His nomination to the Supervisory Board for the 2020-2025 term is proposed to replace Nguyen Thi Bich Nhi, who resigned as the Head of the Supervisory Board on April 15.
In its shareholder meeting materials previously disclosed, Nam Kim Steel outlined its business plan for 2024. The company plans to achieve a total revenue of VND 21,000 billion, a 12.8% increase from 2023, and a pre-tax profit of VND 420 billion, a 137% increase.
The company will also present shareholders with a plan to issue shares to existing shareholders in a 50% ratio, with shareholders owning 2 shares entitled to purchase an additional 1 new share at a price of VND 12,000/share. The share issuance is expected to take place between 2024 and 2025.
Accordingly, Nam Kim Steel plans to issue up to 131.6 million shares, raising VND 1,579.6 billion. The entire proceeds from the issuance will be used to contribute to Nam Kim Phu My Steel Co., Ltd. to invest in the Nam Kim Phu My Steel Sheet and Roofing Factory project.
Additionally, Nam Kim Steel will propose a plan to issue shares to increase share capital from retained earnings. The number of shares to be issued is expected to be 20% of the total outstanding shares, equivalent to 52.65 million shares. The subscription ratio will be 100:20, meaning that for every 1 share owned, a shareholder will receive 1 right to subscribe for the additional shares.
The source of funds for this issuance is the company’s audited 2023 separate financial statement. The implementation is expected to take place in 2024 and/or 2025, coinciding with the public share offering.
Finally, Nam Kim Steel intends to issue 2.5 million shares under its employee stock option plan (ESOP) at a price of VND 10,000/share. The issuance is intended for management personnel (excluding the Chairman of the Board of Directors and the General Director) of Nam Kim Steel and its subsidiaries, as per the list approved by the Board of Directors.
The implementation is expected to take place in 2024 and/or 2025, following approval from the State Securities Commission. Of the 2.5 million ESOP shares, 50% will be subject to a one-year transfer restriction, while the remaining shares will be subject to a two-year transfer restriction from the date of issuance completion.
As of March 31, 2024, the charter capital of Nam Kim Steel was VND 2,632.7 billion, representing 263.3 million outstanding shares.
