Dabaco Vietnam Group JSC (Ticker: DBC, HoSE) has announced its plans to offer a public share sale.
Specifically, based on the resolutions of the 2024 Annual General Meeting of Shareholders No. 01/2024/NQ- ĐHĐCĐ dated April 27, 2024; Resolution of the Board of Directors No. 04-01/2024/NQ-HĐQT dated June 5, 2024, and Resolution No. 04-03/2024/ NQ-HĐQT dated June 5, 2024, the Group has approved the proposal to offer an additional share sale to existing shareholders to invest in Dabaco Vegetable Oil LLC in the form of a loan for the “Project for the Construction and Refining of Dabaco Soybean Oil Factory.”
Illustrative image
Accordingly, Dabaco plans to offer more than 80 million new shares to existing shareholders at a ratio of 3:1 (corresponding to 1 new share for every 3 shares held). The offering price is VND 15,000/share, which is less than half of the market price on the morning of July 5 (VND 34,100/share).
The registration and payment period will run from July 24 to August 15. The transferable subscription right will be valid from July 24 to August 8. The issued shares will not be restricted from transfer, providing convenience to investors.
If the offering is successful as planned, Dabaco expects to raise approximately VND 1,210 billion. This entire amount will be invested in Dabaco Vegetable Oil LLC to build a soybean oil pressing and refining plant. The project has a total investment of VND 1,330 billion, of which VND 795 billion is for equipment and fixed assets, and the remaining VND 535 billion is for working capital.
In terms of business performance, according to the Q1/2024 consolidated financial statements, in the first three months of 2024, Dabaco recorded net revenue of VND 3,252 billion, up 40% over the same period. Gross profit was VND 348 billion, while in the same period last year, there was a loss of more than VND 70 billion.
Net profit for the first quarter of this year was VND 72.6 billion, much improved from the loss of nearly VND 321 billion in the same period last year.
Explaining the profit difference, Dabaco said that in Q1/2024, the prices of some main raw material items for animal feed production decreased, resulting in lower production costs.
In addition, domestic farmers had a demand for restocking, so the consumption of animal feed increased, leading to improved production and business results compared to the same period last year.
The company also said that pork prices were gradually increasing due to reduced supply caused by diseases, leading to improved production and business results for the Group’s farming companies compared to the previous year.
In 2024, Dabaco sets a target of VND 25,380 billion in revenue, up 14% from the previous year; and net profit of VND 729.8 billion, 29 times higher than the result achieved in 2023.
Thus, with the results achieved in the first quarter, the enterprise of Chairman Nguyen Nhu So has accomplished more than 12% and nearly 10% of the revenue and profit plans for 2024, respectively.
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