Thursday, 18:18 20/06/2019
Vingroup’s subsidiary aims to raise US$600 million for projects in Hanoi
Part of the money raised would be used to construct Vietnam Exhibition Fair Center with investment capital of US$249 million, a mall and housing project in downtown Hanoi costing US$177 million.
Vietnam Exhibition Fair Center (VEFAC), a subsidiary of Vietnam’s largest conglomerate Vingroup, plans to increase its capital by 7-fold from VND1.6 trillion (US$69.14 million) to VND13.89 trillion (US$600.32 million) to fund new projects.
Following the plan, VEFAC is expected to issue over 1.2 billion shares to raise VND12 trillion (US$518.52 million).
At present, Vingroup is the largest shareholder of VEFAC, holding an 83.3% stake, followed by the Ministry of Culture, Sports and Tourism with 10%.
VEFAC expects to utilize VND5.77 trillion (US$249 million) from the money raised to construct the Vietnam Exhibition Fair Center in the rural district of Dong Anh, 15km north to Hanoi’s center.
The location of VEFAC’s previous exhibition center was in Giang Vo street, a downtown area of Hanoi, would now be used to develop a mall and housing project with investment of VND4.1 trillion (US$177 million), while VND2.36 trillion (US$102 million) will be funded for the construction of an urban project in Me Tri ward, in the western district of Nam Tu Liem.
VEFAC earned revenue of VND70 billion (US$3 million) last year and an after-tax profit of VND33 billion (US$1.42 million). It targets revenue of VND76.7 billion (US$3.31 million) in 2019.
As of December 31, 2018, VEFAC had assets worth VND1.82 trillion (US$78.66 million), including VND1.06 trillion (US$45.81 million) in short-term assets and VND810 billion (US$35 million) in long-term assets.
Design of Vietnam Exhibition Fair Center. Source: Vingroup.
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At present, Vingroup is the largest shareholder of VEFAC, holding an 83.3% stake, followed by the Ministry of Culture, Sports and Tourism with 10%.
VEFAC expects to utilize VND5.77 trillion (US$249 million) from the money raised to construct the Vietnam Exhibition Fair Center in the rural district of Dong Anh, 15km north to Hanoi’s center.
The location of VEFAC’s previous exhibition center was in Giang Vo street, a downtown area of Hanoi, would now be used to develop a mall and housing project with investment of VND4.1 trillion (US$177 million), while VND2.36 trillion (US$102 million) will be funded for the construction of an urban project in Me Tri ward, in the western district of Nam Tu Liem.
VEFAC earned revenue of VND70 billion (US$3 million) last year and an after-tax profit of VND33 billion (US$1.42 million). It targets revenue of VND76.7 billion (US$3.31 million) in 2019.
As of December 31, 2018, VEFAC had assets worth VND1.82 trillion (US$78.66 million), including VND1.06 trillion (US$45.81 million) in short-term assets and VND810 billion (US$35 million) in long-term assets.
