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Banking & Finance

Coteccons to freeze foreign ownership at 40%

Released at: 11:07, 25/10/2016

Coteccons to freeze foreign ownership at 40%

Photo: Coteccons/Courtesy

Limit imposed as it conducts private placement for strategic investors.

by Duy Anh

The Coteccons Construction Company will temporarily freeze its foreign ownership limit at 40 per cent of charter capital in order to conduct a private placement for strategic investors in the fourth quarter. 

The real estate giant plans to issue 14.43 million shares to strategic investors before the end of the year, with a par value of VND144.3 billion ($6.46 million). The shares cannot be sold for one year after purchase.

In early October the Ton Poh Fund sold 77,460 shares in Coteccons, bringing its holding down from 2.2 million shares (5.08 per cent) to 2.12 million (4.32 per cent).

The fund is therefore no longer the major shareholder of Coteccons. The sale was conducted when the share was trading from VND260,000 ($11.6) to VND273,000 ($12.2) (unadjusted price).

On October 18 Coteccons finalized the lists of shareholders for its issuance of 16.37 million bonus shares, with a ratio of 3:1 (shareholders receive one bonus share for every three they hold). The par value was VND164 billion ($7.34 million).

At the close of trade on October 19 the share stood at VND188,000 ($8.42), for a capitalization of VND12.31 trillion ($551.49 million).

Coteccons recorded positive financial results in the third quarter of 2016, with total revenue reaching VND5.3 trillion ($237.4 million), up 39 per cent year-on-year. Though cost of goods sold in the period went up only 38 per cent, its total profit increased 59 per cent year-on-year, to VND459 billion ($20.56 million).

Total revenue for the first nine months was therefore VND13.46 trillion ($603 million), a 64 per cent increase year-on-year, and after-tax profit was VND961 billion ($43 million), up 114 per cent. Its earnings per share (EPS) in the first nine months was VND19,445 ($0.87).

Its 2016 net profit target was VND800 billion ($35.84 million), which it has exceeded by 20 per cent already.

As at the end of the third quarter, total assets stood at VND9.16 trillion ($410.36 million). Cash and equivalents were VND2.14 trillion ($95.87 million), up 46 per cent compared to December 31, 2015, with total bank deposits and bonds at VND1.74 trillion ($77.95 million).

Accounts receivables as at the end of the third quarter were VND2.37 trillion ($106.17 million), down VND232 billion ($10.4 million) compared to the start of the year.

Cost of construction in progress as at the end of the third quarter was VND992 billion ($44.44 million), with many projects still under construction, including D.Capitale Tran Duy Hung, Masteri Thao Dien, and Preche Thao Dien.

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