“Bamboo Capital’s Ambitious Plans: Unveiling the Issuance of 266 Million New Shares”

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The subscription ratio is 2:1, meaning that for every share owned on the record date, shareholders will receive one subscription right, and for every two subscription rights, they will be able to purchase one new share. After this offering, BCG’s chartered capital is expected to increase to 8,000 billion VND. The record date is May 13, 2024.

The purpose of this additional issuance is to strengthen the company’s capital base, matching its current total asset value; supplement capital for the company’s business operations; and restructure the debt-to-equity ratio.

The transfer period for subscription rights is from May 16, 2024, to May 30, 2024, and the subscription rights can be transferred once but not further to a third party. The subscription and payment period is from May 16, 2024, to June 4, 2024.

In January 2022, BCG successfully offered 148 million shares at a price of 12,000 VND per share to existing shareholders, raising over 1,785 billion VND and increasing its chartered capital to more than 4,463 billion VND. As of March 31, 2024, BCG’s chartered capital was 5,335 billion VND, and its owner’s equity was 17,673 billion VND.

BCG operates as a corporation and has built a diverse, mutually supportive ecosystem. Its governance model and strengths in project implementation and corporate restructuring have steered its business units in renewable energy, real estate, construction and infrastructure, financial services and insurance, and manufacturing in the right direction, maintaining impressive growth.

In addition to the well-known BCG Energy and BCG Land, Tracodi, a long-standing member company, has made its mark in the market. Two new member companies that joined the BCG ecosystem over two years ago, AAA Insurance and Tipharco Pharmaceuticals, have also achieved impressive growth.

After BCG acquired AAA Insurance in late 2021 and restructured it, AAA Insurance’s revenue grew significantly from over 190 billion VND to over 650 billion VND in 2023, with branches nationwide, entering the Top 15 largest non-life insurance companies in Vietnam. AAA Insurance’s revenue is expected to reach 1,500 billion VND in 2024.

Similarly, after joining BCG in early 2022, Tipharco’s business performance has grown exponentially. In 2022, Tipharco’s net revenue reached 297.1 billion VND, a 46% increase, and its after-tax profit was 18.2 billion VND, a 19.7-fold increase compared to 2021. In 2023, Tipharco continued its breakthrough, recording net revenue of 372.6 billion VND, a 25% increase, and an after-tax profit of 30.6 billion VND, a 68% increase over the previous year. For 2024, Tipharco has set a business plan with consolidated net revenue of 406 billion VND and an expected after-tax profit of 33.2 billion VND.

Tipharco Pharmaceuticals has shown impressive growth since joining the Bamboo Capital ecosystem over two years ago

In early April 2024, the plan for the implementation of the Power Development Master Plan VIII was issued, and BCG Energy, BCG’s member company in charge of renewable energy, has projects with a total capacity of over 900 MW included in this plan. After a slowdown in 2021-2023 due to policy bottlenecks, 2024 will be the year BCG Energy restarts and accelerates the implementation of large-scale renewable energy projects.

Currently, BCG Energy has a chartered capital of 7,300 billion VND, owner’s equity of nearly 10,000 billion VND, and total assets of nearly 20,000 billion VND. The company operates approximately 600 MW of solar power and is one of the top three renewable energy companies in Vietnam. Within the next three years, BCG Energy’s total assets are expected to increase to over 70,000 billion VND, with a generation capacity of nearly 2GW.

According to Bamboo Capital’s leadership, renewable energy is a potential business area that will bring significant benefits to the Group. With its current scale, BCG Energy’s annual electricity revenue is over 1,300 billion VND. Within the next three years, with the expected growth in asset size, electricity revenue is projected to increase to approximately 6,000 billion VND per year. After 8 to 9 years of operation, when the project finance loans from credit institutions are fully repaid, the free cash flow will be very stable, and the electricity sales revenue after operating expenses will bring enormous cash flow to BCG.

In March 2024, BCG Energy and SK Ecoplant (South Korea) signed a cooperation agreement. With its significant development potential, Bamboo Capital’s renewable energy business has continuously attracted the attention of international corporations seeking investment opportunities.

In the real estate sector, with the expectation of a positive recovery in the market in 2024, BCG Land aims to significantly increase its net revenue to nearly 2,190 billion VND and its after-tax profit to over 424 billion VND, representing a 2.3-fold and 3.1-fold increase, respectively, compared to 2023.

In the infrastructure construction sector, in 2024, Tracodi will focus its resources on implementing contracted real estate and transportation infrastructure projects while continuing to participate in tenders for potential projects. Tracodi has set a business plan for 2024, with consolidated net revenue of 1,920 billion VND, a 7.6% increase over the same period, and an expected after-tax profit of 186 billion VND, a 5.8% increase over the previous year.

At the recent 2024 Annual General Meeting of Shareholders, Mr. Pham Minh Tuan, Vice Chairman of Bamboo Capital Group, shared that in the next three years, Bamboo Capital would require over 60,000 billion VND to implement 800 MW of wind power projects, four waste-to-energy projects, and key real estate projects.

Previously, to seize investment opportunities promptly, Bamboo Capital raised capital through debt, bond issuance, and attracting investors to successfully develop large-scale projects. This additional share issuance aims to restructure the capital source, ensure a healthy financial structure, and reduce the debt-to-equity ratio to 0.7, contributing to the company’s sustainable development, expanding its advantages, and enhancing its operational efficiency. The capital increase through share issuance also strengthens Bamboo Capital’s internal resources and, in the long term, will bring better value to shareholders.

On April 27, 2024, the Annual General Meeting of Shareholders of Bamboo Capital Group approved the 2024 consolidated revenue plan of 6,102.5 billion VND and a total after-tax profit of 951.7 billion VND. Compared to the results of 2023, Bamboo Capital Group’s 2024 business plan is expected to grow by 152% in revenue and 556% in profit.

In the first quarter of 2024, Bamboo Capital Group recorded consolidated net revenue of 985.4 billion VND, a 40.5% increase over the same period in 2023. The main contributors to this revenue were the renewable energy sector (320.4 billion VND) – accounting for 32.5%, infrastructure construction (222.1 billion VND) – 22.5%, real estate (209.8 billion VND) – 21.3%, and financial services (185.7 billion VND) – 18.8%. The consolidated after-tax profit in the first quarter of Bamboo Capital was 98.2 billion VND, a more than tenfold increase over the same period.

For the period 2024-2028, Bamboo Capital forecasts an average annual growth rate of 50%, with a projected net revenue of 30,475.2 billion VND in 2028. The after-tax profit for 2028 is expected to reach 4,535.6 billion VND. To achieve this remarkable growth, Bamboo Capital needs to prepare a substantial amount of capital to implement a series of large-scale projects.

Currently, BCG’s book value is 33,100 VND per share. However, BCG’s closing price on May 8, 2024, was 8,570 VND. At the recent annual general meeting on April 27, the Group’s leadership shared that despite the current market price being much lower than the book value and the issuance price, there is strong interest from institutional and individual investors who want to participate in this issuance.

After completing the 2:1 issuance, Bamboo Capital will proceed with the bonus share issuance plan. The total number of bonus shares to be issued by Bamboo Capital is 80 million, with a subscription ratio of 100:10, meaning that for every 100 shares owned, shareholders will receive 10 bonus shares.

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