Steel Giant Schedules Release of Nearly 200 Million Shares, Focusing on its “Steel Fist” Project in Ba Ria-Vung Tau

In its latest announcement, Nam Kim Steel Joint Stock Company (code: NKG) stated that December 20, 2024, will be the record date for shareholders to receive shares issued to increase capital from equity sources.

Specifically, Nam Kim Steel plans to issue nearly 53 million shares to shareholders at a ratio of 100:20, meaning that for every 100 shares owned, shareholders will receive 20 new shares. The issuance source is the surplus capital determined according to the audited separate financial statements for 2023.

At the same time, Nam Kim Steel has also received a certificate of registration for public offering of shares issued by the SSC on December 2, 2024, to be implemented within 90 days.

According to the published plan, Nam Kim will offer 131.6 million shares to existing shareholders at a price of VND 12,000 per share, 40% lower than the market price at the close of December 6 at VND 19,000 per share.

With a ratio of 2:1, shareholders owning 2 shares will be entitled to purchase 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 shares from December 31, 2024, to January 24, 2025.

Nam Kim Steel expects to raise nearly VND 1,580 billion from this offering, which will be entirely invested in the Nam Kim Phu My Steel Sheet and Roofing Project in Ba Ria-Vung Tau province, with a total investment of up to VND 4,500 billion in phase 1.

The Nam Kim Phu My Steel Sheet and Roofing Project will include a 350,000-ton-per-year galvanized steel line, two aluminum-zinc alloy-coated steel lines with capacities of 300,000 tons and 150,000 tons per year, and a 150,000-ton-per-year color-coated steel line.

At the Annual General Meeting held in April 2024, Mr. Ho Minh Quang, Chairman of Nam Kim Group, stated that the factory had received a construction permit and was 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.

Therefore, in the coming time, Nam Kim will issue a total of nearly 185 million shares, including both the bonus share plan and the offering to existing shareholders.

If both issuance plans are completed, Nam Kim Steel’s charter capital will increase from nearly VND 2,633 billion to nearly VND 4,480 billion.

Regarding the company’s performance in Q3 2024, Nam Kim Steel recorded revenue of VND 5,188 billion, up 22% year-on-year, and after-tax profit of VND 65 billion, up 174% compared to the same period last year. The gross profit margin improved from 4.8% to 8.7%.

According to the explanation, the profit increase in Q3 2024 compared to the same period last year was due to higher revenue as the company boosted domestic and export sales channels. Additionally, increased production volume led to lower average production costs, resulting in improved profit margins.

Accumulated in the first nine months of 2024, Nam Kim Steel achieved revenue of VND 16,140 billion, up 14% year-on-year, and after-tax profit of VND 435 billion, up 296% compared to the same period last year.

For the full year 2024, Nam Kim Steel set a target of VND 21,000 billion in total revenue, up 13% compared to 2023, and VND 420 billion in pre-tax profit, up 137%. With the pre-tax profit of VND 543 billion in the first nine months, the company has exceeded 29% of its plan.