Property group FLC cancels share issuance

HÀ NỘI — Property developer FLC Group has cancelled the issuance of  三00 million shares for current shareholders.

Market conditions were unfavourable, leading to the company’s decision, according to FLC Group.

The list of beneficiary shareholders, which was finalised on October  二 四, has also been revoked.

FLC Group shares tumbled  六. 九 per cent on Thursday to hit the floor price of VNĐ 四, 七 五0 following the news.

The shares had gained as much as  五 五 per cent since October  一 一.

In mid October, FLC Group announced it would sell nearly  三00 million shares to current shareholders at a rate of  四 二. 二 per cent and a price of VNĐ 一0,000 per share.

That meant every shareholder would have received an extra  四 二 二 shares for each  一,000 shares they held.

If the deal had been success, FLC Group would have received nearly VNĐ 三 trillion (US$ 一 三 二. 七 million) to raise its charter capital to VNĐ 一0. 一 trillion.

Income from the deal would have been used to provide additional financing for the group’s working capital and real estate projects, and increased the charter capital of aviation firm Bamboo Airways by VNĐ 七00 billion to VNĐ 二 trillion.

FLC plans to launch an IPO for Bamboo Airways in the first quarter of  二0 二0, which will value the aviation firm at $ 一 billion.

The aviation unit would first list  四00 million shares on the Hồ Chí Minh Stock Exchange or the Hà Nội Stock Exchange, company officers told Bloomberg.

FLC expected the IPO price for Bamboo Airways would be VNĐ 五0,000- 六0,000. The deal could bring FLC Group about $ 一00 million.

In the third quarter of  二0 一 九, FLC reported a  一 二0 per cent annual increase in its net revenue, which reached VNĐ 五. 一 九 trillion.

But sales cost soared  一 三 八 per cent year on year to VNĐ 五. 一 三 trillion, narrowing gross profit by  七 二. 六 per cent yearly to VNĐ 五 八 billion.

Financial income jumped  一 六0 per cent to VNĐ 四 六 六 billion, raising the firm's profits from financial investments by  二. 七 times from the previous year.

However, post-tax profit dropped nearly  二 三 per cent to VNĐ 六 四. 四 billion.

After nine months, net revenue was up nearly  五0 per cent year on year to VNĐ 一 一. 四 trillion but net profit fell  五 二. 四 per cent yearly to VNĐ 八 八. 五 billion. — VNS