HCMC – Development Investment Construction JSC (HOSE: DIG) has suspended its planned offering of 200 million shares, citing unfavorable market conditions.
The company’s board of directors decided to put the public offering on hold to protect shareholder interests. A report on the decision will be presented at the upcoming shareholders meeting.
The company had received approval from the State Securities Commission for the offering, which was scheduled to run from January 21 to February 19, 2025. The shares were to be offered at a ratio of 1,000:327.94. The company aimed to raise VND3 trillion by issuing 200 million shares at VND15,000 each.
DIG plans to use the proceeds to fund two major projects, with over VND1.1 trillion used for the second and third phases of the Cap Saint Jacques complex and VND1.4 trillion for the Vi Thanh project. The remaining funds were to be used for repaying bonds.
Despite a surge in revenue, the firm’s profits have dropped significantly. For the first nine months of 2024, the company reported a 46.4% rise in revenue, reaching VND869 billion. However, its net profit plunged by 84.5% to VND15.18 billion.
The company initially set an ambitious target for 2024, with projected revenue of VND2.3 trillion and pre-tax profit of over VND1 trillion. However, it has so far only achieved 4.2% of its profit target.
Closing the trading session today, December 23, DIG edged up by 2.11% to VND19,400 per share, with over 5.4 million shares changing hands.
The Hochiminh Stock Exchange wrapped up Monday’s session with modest gains. The VN-Index rose 5.26 points, or 0.42%, to finish at 1,262.76 points, with 263 winners and 135 losers.
Total trading volume and value on the southern market reached 494.7 million shares and VND12.31 trillion, down by 13% in volume and 9.1% in value over the previous session.
The VN30-Index, which tracks the 30 largest-cap stocks, saw 18 stocks advancing and eight others declining.
Securities firm SSI dropped the steepest among the bluechips, down by 1.5% to VND25,850, with a trading volume exceeding 7.8 million shares.
On the contrary, insurance stock BVH stood out with a 3.7% increase, closing at VND53,000. Bank stocks also performed well, with STB up by 1.9% and SSB rising by 1.5%.
Steelmaker HPG took the lead by liquidity on the southern exchange with nearly 12.9 million shares traded. It gained 1.12% to close at VND27,000.
On the Hanoi Stock Exchange, the HNX-Index added 1.44 points, or 0.64%, to 228.51 points, with 93 advancers and 64 decliners. The northern exchange recorded a trading volume of 52.89 million shares valued at VND917.53 billion.
