Bac Ninh Agricultural Product firm to offer shares

Friday, May 9, 2008
Bac Ninh Agricultural Product Joint Stock Co (coded DBC)'s shareholders' annual meeting recently passed the plan to offer 16.55 million shares to hike its chartered capital to 260 billion dong in two phases.

In the first phase, DBC plans to offer 9.45 million shares to the existing shareholders at the ratio of one new share for one share held with the price of 15,000 dong per share, 70,000 shares will be sold to the key staff, 50,000 shares will be offered to the company's new staff and 350,000 shares will be allocated to the directors board's members with the price of 17,000 dong per share.

In the second one, DBC would retail 6.63 million shares to strategic partners with the price of 80% of the average trading price of five consecutively trading session and not below 23,000 dong per share.

The capital being mobilised from the share issue will be invested in big project and support business capital.

Particularly, the company plans to invest in Dabaco 2 plant project worth 42.292 billion dong in Khac Niem industrial zone in Bac Ninh, 35 billion dong to establish Dabaco Song Hau (Hau River) Joint Stock Co, 60 billion dong to build a warehouse for lease in Dai Dong industrial zone and 12.448 billion dong to support business capital.

In the second phase, the company would invest 115 billion dong in Que Vo 3 industrial zone and 37.49 billion dong to support business capital.

In addition, the shareholders' meeting also passed the plan to change its name to Dabaco Vietnam Joint Stock Co and offer 100 billion dong of corporate bonds at 100,000 par separately to invest 50 billion dong in infrastructure in Que Vo III industrial zone and the remaining 50 billion dong will be invested in the project to build a warehouse for lease.

These bonds with terms of from three-years to five years have fixed interest rate of 13-15%.

This year, the company has been striving to achieve over 1.515 trillion dong in total revenue, 50.346 billion dong from pre tax profit, 44.051 billion dong from after tax profit and dividend of 15%.