In the recently announced plan, Nam Kim will offer 131.6 million shares to existing shareholders at VND 12,000 per share, significantly lower than the market price of VND 19,200 per share at the close of the session on December 6, 2024. With a 2:1 allocation ratio, shareholders owning 2 shares will be entitled to buy 1 new share. The ex-rights date is set as December 19, 2024.
The transfer period for the share purchase rights is scheduled from December 31, 2024, to January 15, 2025. Shareholders can register and pay for the new shares from December 31, 2024, to January 24, 2025.
Preparing for the Phu My Project
The expected proceeds of approximately VND 1,580 billion will be invested in the Phu My factory project, which is a key initiative for Nam Kim. The total investment for the first phase of this project is up to VND 4,500 billion.
The new factory will be equipped with modern production lines, including a zinc coating line with a capacity of 350,000 tons per year, two aluminum-zinc alloy coating lines with capacities of 300,000 tons and 150,000 tons per year, respectively, and a color coating line with a capacity of 150,000 tons per year.
Mr. Ho Minh Quang, Chairman of Nam Kim Group, stated at the Annual General Meeting in April 2024 that the factory has received a construction permit and is expected to be operational by the end of 2025 or early 2026. “When operating at full capacity in 2027, the factory will help increase Nam Kim’s total capacity from 1 million tons to 1.6 million tons per year,” said Mr. Quang.
Regarding the project’s prospects, General Director Vo Hoang Vu believes that this strategic move will position Nam Kim to capitalize on the anticipated recovery of the global steel market in 2025-2026.
In parallel, the Company will also issue additional shares to increase capital from the owner’s equity source at a ratio of 100:20, meaning that for every 100 shares held, shareholders will receive 20 new shares. The ex-rights date for this offering is also December 19, 2024.
