**Petrovietnam Transportation Corporation (Petrotrans) Announces Rights Issue with a 3:2 Allocation Ratio**
The allocation ratio is 3:2, meaning that for every 3 shares owned, shareholders will be offered 2 new shares. The offering period is expected to run from Q4 2024 to Q2 2025, and the new shares will be freely transferable.
Shareholders with pre-emptive rights are allowed to transfer their rights to others once, and the transferee is not permitted to transfer them further.
For any unsubscribed or renounced shares, the Board of Directors will determine the allocation of these shares to other investors at a price not lower than the offering price, with a one-year lock-up period.
The offering price is set at VND 10,000 per share, representing a 24% discount to the closing price of VND 13,100 on December 4th. The total offering value is approximately VND 334 billion.
If successful, Petrotrans will increase its charter capital from VND 500 billion to over VND 833 billion, resulting in over 83.3 million shares.
The proceeds from the offering will be used to invest nearly VND 294 billion in the purchase of a fifth ship for transporting oil products/chemicals with a deadweight of approximately 19,000-25,000 DWT. The remaining amount of nearly VND 40 billion will be used to repay bank loans.
Source: Petrotrans
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According to the resolutions of the second extraordinary general meeting of shareholders in 2024, Petrotrans approved the plan to build four new ships for transporting oil/chemicals with a deadweight of 25,900 DWT each. The ships will be built in China, with an investment of up to USD 48.15 million per ship. The total investment is estimated at nearly USD 193 million, equivalent to VND 4.9 trillion. The expected return on equity (ROE) is approximately 10.72% per ship.
The investment capital will come from equity and loans from credit institutions (not exceeding 80% of the ship value).
Additionally, the meeting approved the resignation of Mr. Pham Xuan Quang from the Board of Directors for the 2023-2028 term due to personal reasons.
Petrotrans to Invest up to VND 4.9 Trillion in Four New Ships
