Hoa Phat Group Plans to Issue Over 580 Million Shares for Steel Production Expansion

Hoa Phat Group, a leading construction steel producer in Vietnam, has announced plans to issue over 580 million shares to increase its capital to nearly 64 trillion VND. The final list of shareholders entitled to receive additional shares was announced on May 25.

According to the Chairman of Hoa Phat, the group has been investing in large projects in recent years, leading to dividends being paid in shares. The group aims to harmonize the interests of businesses and shareholders, with plans to return to paying cash dividends if business results remain positive from 2025 onwards.

Hoa Phat’s revenue target for this year is 140 trillion VND, with a profit after tax target of 10 trillion VND, representing a 16% and 47% increase respectively compared to 2023. Looking ahead, the group plans to focus on steel production in the next 5-10 years. The company is currently working on completing the Hoa Phat Dung Quat 2 Iron and Steel Production Complex project in Quang Ngai, which will increase the company’s crude steel production capacity to over 14 million tons per year. Additionally, the group has invested in projects in Phu Yen, including seaports, industrial parks, and iron and steel complexes, with a total capital of 120 trillion VND.

In conclusion, Hoa Phat’s move towards issuing more shares is an indication of their commitment towards growth and expansion. Their focus on steel production in the next few years will undoubtedly lead them towards becoming one of the major players in this industry not only within Vietnam but also globally.