BAF has authorized Ms. Bui Huong Giang – CEO of the Company, to make decisions and take necessary actions for BAF to acquire 2.8 million shares of San Xuat Rung Xanh.
Concurrently, Ms. Giang has been appointed as the authorized representative to manage the above-mentioned shares of the Company at San Xuat Rung Xanh. During her tenure, Ms. Giang is authorized to delegate tasks within the authority of the CEO to individuals or organizations.
In other news, the BAF Board of Directors has approved the final list of shareholders to seek approval for the private placement plan for 2024, with the expected timeline set for October 2024. However, detailed information about this plan has not yet been disclosed.
Notably, BAF aims to raise additional capital amidst the successful offering of over 68.4 million common shares at VND 10,000 per share, a 47% discount to the market price on July 19 (VND 19,000 per share). These shares were offered through the exercise of subscription rights, with a ratio of 1:0.476767, meaning that for every 10 shares held, shareholders were entitled to purchase nearly 4.8 new shares.
Additionally, BAF has completed an ESOP share issuance of 2.6 million shares out of the registered amount of over 7 million shares, accounting for nearly 36% of the total offered.
Regarding the unissued ESOP shares, BAF cited objective factors such as the specific nature of the livestock industry, where over 90% of the Company’s workforce is currently employed in farms located in remote areas. This presents challenges in terms of access to information about securities and the stock market. As a result, a significant portion of the employees may not fully understand the benefits of ESOP shares, while others may not have the financial means to purchase them due to limited incomes.
BAF‘s proposed solution involves proactive communication with employees during the ESOP share issuance, along with specific and suitable measures to enable employees to purchase the preferential shares and fully enjoy the associated benefits. This approach is expected to increase employee income, foster a stronger sense of connection, and encourage long-term commitment to the Company.
BAF completes the sale of over 68 million shares to existing shareholders
In terms of business performance, according to the reviewed consolidated financial statements for the first half of the year, BAF recorded net revenue of over VND 2,600 billion, an 8% increase compared to the same period last year, while net profit reached nearly VND 154 billion, a thirteenfold increase.
The Company attributed this performance to the recovery in pig prices following a low base in the fourth quarter of 2023. BAF‘s pig production in the second quarter exceeded 144,000 heads, bringing the total pig production for the first half to over 252,000 heads, 1.8 times higher than the same period last year.
Additionally, input costs for feed production decreased by 10-20% compared to the previous period, contributing to improved farming profitability.
Furthermore, the cumulative profit for the first half of the year included gains from the sale of a land lot on Mai Chi Tho Street. Initially, this land was intended for the development of BAF‘s new office building. However, as the Company relocated to a more suitable location, it was decided to divest from this asset and focus resources on the core livestock business.
As of the market close on September 11, BAF‘s share price stood at VND 19,050 per share, reflecting a modest gain of over 4% since the beginning of 2024. Average trading liquidity reached nearly 3.5 million shares per session.
Share price performance of BAF since the beginning of 2024
