On the afternoon of April 26, 2024, Construction Investment and Development Corporation (DIC Corp, stock code DIG) organized the 2024 Annual General Meeting of Shareholders. At 4:32 p.m., the business representative announced that the attendance rate was sufficient. conducted with 2,101 people (both in person and online) representing 306 million votes, accounting for 50.24%.
Thus, the Congress was carried out successfully the first time. Before the organization, DIC Corp announced that it would give gifts to shareholders attending the 2024 Annual General Meeting of Shareholders, applicable both in person and online. Specifically, shareholders owning 1,000,000 DIG shares or more will receive 10,000,000 VND/shareholder. Shareholders holding less than 1,000,000 shares will be given 10 VND/share to encourage shareholders to attend.
At the Congress, DIC Corp submitted to shareholders for approval the 2024 business plan with a revenue target of 2,300 billion VND, an increase of 72% over the same period, expected pre-tax profit of 1,010 billion VND, an increase of 508.9% compared to the same period. implemented in 2023. This year, DIC Corp is expected to implement many capital mobilization plans.
First, DIC Corp is expected to borrow an additional 220 billion VND from the bank. Of which, VND 160 billion is borrowed to implement the Cap Saint Jacques Complex project – phases 2 & 3 in Vung Tau; and 60 billion VND to invest in DIC Star Vi Thanh hotel and conference at Vi Thanh commercial residential area in Hau Giang.
Second, DIC Corp plans to offer shares to existing shareholders at a rate of 32.794%, corresponding to issuing an additional 200 million shares at a price of 15,000 VND/share, mobilizing 3,000 billion VND and is expected to deploy in year 2024.
With the amount of money mobilized, DIC Corp will use 1,135 billion VND to supplement investment capital for the Cap Saint Jacques Complex project phase 2 & 3 at 169 Thuy Van, Ward 8, City. Vung Tau; 965 billion VND to supplement investment capital for Vi Thanh Commercial Residential Area project in Ward 4, City. Vi Thanh, Hau Giang province; and the remaining VND 900 billion to pay part or all of the principal and interest obligations of bonds issued in 2021.
Third, offer a maximum of 150 million individual shares to professional stock investors, the offering price is not lower than 20,000 VND/share (37.9% lower than the closing price on March 29 of 32,200 VND/share), individual shares will be restricted from transfer for 1 year and are expected to be implemented in 2024 to 2025.
If the private placement is successful, DIC Corp will mobilize 3,000 billion VND. The Company plans to use 2,000 billion VND to supplement capital for the Nam Vinh Yen New Urban Area project in City. Vinh Yen, Vinh Phuc province; and VND 1,000 billion in additional investment capital for the Lam Ha Center Point Housing Area project in Lam Ha ward, City. Phu Ly, Ha Nam province.
Fourth, DIC Corp plans to issue an additional 30 million shares under the employee option program (ESOP), corresponding to 4.919% of the total outstanding shares, deployed in 2024. ESOP is restricted from transfer for 1 year from the date of completion of the issuance. The expected issuance price is 15,000 VND/share, 53.4% lower than the closing price on March 29, 2024 of 32,200 VND/share.
Fifth, DIC Corp plans to pay dividends in 2023 in shares at a rate of 2.5% and bonus shares at a rate of 2.5%, a total of 5%, capital issued from equity and expected to be implemented in 2024. Thus, it is estimated that DIC Corp will issue an additional 30.5 million shares to pay 2023 dividends and stock bonuses.
The order of issuance will be to issue shares to existing shareholders; Pay dividends in 2023 and bonus shares; issuance of ESOP shares; and finally the private offering of shares. If 4 issuances are completed (a total of more than 410 million shares), it is estimated that DIC Corp’s charter capital will increase from nearly 6,100 billion VND, to more than 10,200 billion VND.
