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ROS to issue additional shares

Released at: 14:00, 25/11/2016

ROS to issue additional shares

Photo: Duc Anh/Illustration

Once the necessary procedures are completed, existing shareholders will be offered shares at a ratio of 4:1.

by Duy Anh

The Faros Construction Corporation (ROS), in which FLC Chairman Mr. Trinh Van Quyet holds 65 per cent of capital, will issue additional shares to fund real estate projects and rename itself as the FLC Faros Construction Corporation.

With an extraordinary shareholders meeting scheduled for November 29, ROS has announced a proposal to issue 107.5 million shares to existing shareholders, at a ratio of 4:1.

The share issue will collect a minimum of VND1.075 trillion ($47.72 million) and fund the investment in the FLC Sea Tower project in Quy Nhon city, south-central Binh Dinh province.

The offering price is expected to be VND12,500 ($0.55) per share and will not be lower than the par value of VND10,000 ($0.44). ROS’s shares are currently trading at around VND120,000 ($5.32).

The issue will be conducted in the first quarter of 2017 after being passed at the upcoming shareholder meeting and procedures approved by the State Securities Commission (SSC).

There will then be 537.5 million ROS shares on the market, equal to charter capital of VND5.375 trillion ($238.6 million). Its renaming to the FLC Faros Construction Corporation will further strengthen its cooperation with the FLC Corporation.

Mr. Quyet overtook Vingroup Chairman Pham Nhat Vuong as the richest man on Vietnam’s stock market on November 14.

With 279.559 million shares in ROS and 108.86 million in FLC, his holdings stood at VND33.25 trillion ($1.49 billion) on that day, up VND2.1 trillion ($96 million). In contrast, shares in Vingroup (VIC) fell VND1,100 and closed at VND42,900, pushing Mr. Vuong’s holdings down VND1.16 trillion ($52 million) to VND30.7 trillion ($1.37 billion).

The FLC Group and Faros have become major players in Vietnam’s real estate and construction sectors. The total value of their projects nationwide, including the VND5.5 trillion ($246.6 million) FLC Samson Beach & Golf Resort in Thanh Hoa, the VND7.5 trillion ($337.7 million) FLC Quynhon Beach & Golf Resort in Binh Dinh, and the FLC Vinh Phuc Resort (Phase I) in Vinh Phuc, has been estimated by real estate consultants Savills at more than $3 billion.

Their financial statements show little short-term debt, at VND4.3 trillion ($193 million) in total, equal to just 7 per cent of their total project value. The FLC Group set a profit target for 2016 of VND1.2 trillion ($56.7 million) and reached it two months ahead of schedule, according to CEO Huong Tran Kieu Dung.

Mr. Quyet was born in 1975 in northern Vinh Phuc province. He started out in legal and investment consulting services before entering into trading and real estate. He has a major influence in Vietnam as the owner of a large portfolio of resorts and golf courses. Internationally, he was recognized as one of the most influential people in real estate in Asia in 2016.

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