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PNJ to sell over 9.8mn shares to open 40 stores

Released at: 08:32, 19/06/2017

PNJ to sell over 9.8mn shares to open 40 stores

Illustrative image (Source: PNJ)

State Securities Commission announces receipt of private placement documents, with a sales date still to be determined.

by My Van

The State Securities Commission (SSC) has announced receipt of a registration dossier for the private placement of over 9.8 million shares of the Phu Nhuan Jewelry Joint Stock Company (stock code PNJ), which will fund the opening of 40 new stores.

The issuing price will be no less than 10-15 per cent of the closing price on the date the SSC approves the documents. Based on the share price on June 14, the minimum amount received will be VND800 billion ($35.23 million).

Money raised will added to PNJ’s business capital and fund its retail store expansion.

The cost of opening 40 new stores and branches is some VND60 billion ($2.64 million). Additional working capital for the 40 stores is about VND600 billion ($26.42 million) and PNJ will spend VND25 billion ($1.1 million) on improving equipment at its jewelry factory.

If investors do not purchase all shares on offer, PNJ’s Board of Management will distribute them to others at a fixed price.

PNJ has set a target of opening 40 new stores this year and recording profit growth of 33 per cent.

It Board reported total revenue of VND8.56 trillion ($376.8 million) for 2016, up 11.3 per cent and fulfilling 97.5 per cent of its annual plan. Wholesale sale of jewelry reached 78.9 per cent of the plan but was down 15 per cent compared to 2015.

Pre-tax profit last year was VND608 billion ($26.7 million), up 223 per cent compared to 2015 and 32.2 per cent higher than planned. After-tax profit was VND470 billion ($20.7 million), up nearly five-fold and exceeding the plan by 30 per cent. Consolidated net profit came in at VND449 billion ($19.8 million), nearly double the figure in 2015.

On June 14, PNJ’s shares closed at VND95,300 ($4.19). The share price has increased 29 per cent since mid-April, from VND74,000 ($3.3) to VND95,300 ($4.2).

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