Photo: Duc Anh
Issuance equal to 10% of charter capital.
The Phu Nhuan Jewelry Joint Stock Company (HSX stock code PNJ) has recently approved the issuance of 9.83 million shares in the form of private placement for individual and institutional investors with financial capacity. Re-sale of the shares will be restricted for one year.
PNJ currently has over 98.27 million shares. The new issuance is equal to 10 per cent of charter capital and it is expected that charter capital will increase to over VND1.081 trillion ($47.56 million) after the issuance. The minimum offering price will be no less than 10 to 15 per cent of the closing price at the date of approval of the share offering plan by the State Securities Commission.
About VND60 billion ($2.63 million) from the proceeds will be used to cover the cost of opening 40 new stores and branches this year and VND600 billion ($26.3 million) as working capital for the 40 stores. The company is also expected to use about VND25 billion ($2.63 million) for purchasing new jewelry-making machinery and equipment.
Phu Nhuan produces and trades gold, silver, and gemstone jewelry and buys and sells gold bars and fashion accessories and is one of the largest enterprises in the industry. It has three sales channels: retail, wholesale and export. The retail segment plays the most important role, accounting for 55 per cent of total revenue and 80-85 per cent of gross profit. PNJ is the market leader in jewelry in Vietnam, with a market share of 25 per cent, and is far ahead of its nearest competitors, DOJI and SJC, which hold market shares of less than 10 per cent.
PNJ’s shares were listed on the Ho Chi Minh Stock Exchange in March 2009. Since the beginning of this year, its share price has increased from VND67,000 ($2.93) to VND78,000 ($3.42), or 16 per cent.