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Tuesday, July 23, 2024

Pomina Steel sells 20% stake to Japanese investor

The Saigon Times

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HCMC – Pomina Steel Corporation (HOSE: POM) has cut a deal to sell nearly 70.2 million shares, or a 20% stake, to Japanese firm Nansei Steel at VND10,000 per share.

This announcement was made during the company’s shareholders meeting held on July 14.

Pomina Steel will issue shares in two rounds, and expect to obtain over VND700 billion. The first round is planned for August, during which more than 10.6 million shares will be offered. The remaining shares will be issued in 2024.

Nansei Steel will not be allowed to transfer these shares over a period of three years.

Pomina Steel is currently facing financial difficulties, as indicated by a net loss of nearly VND1.1 trillion in the previous year and an additional loss of VND186 billion in the first quarter of 2023.

Do Tien Si, general director of the company, attributed these losses to a significant decline in steel demand caused by a sluggish real estate market. The high costs associated with operating a new blast furnace project have also contributed to the financial woes.

During the shareholders’ meeting, Pomina Steel revised its revenue target for the year, setting it at VND9,000 billion. However, the company also expects to incur a net loss of VND150 billion.

These figures represent a significant downturn compared to the previous annual report, which had projected revenue of VND14,000 billion and a net profit of VND300 billion.

Do Duy Thai, chairman of the Board of Directors, said that these adjustments reflect a cautious approach due to the challenging market conditions currently prevailing.

The announcement of the forthcoming share offering has already made a positive impact on the stock market, making its POM shares hit the daily upper limits for two consecutive sessions, at VND7,900 per share at the close today, July 17.

On the southern bourse, the VN-Index of the Hochiminh Stock Exchange added 4.73 points, up 0.4% from Friday, closing at 1,173.13 points, with 260 winners and 171 losers.

The trading volume reached 914.62 million shares with a total value of VND18.63 trillion, down 12.29% and 10.75%, respectively, compared to the previous session. Over 63.47 million shares were traded through block deals, contributing VND1.9 trillion to the overall value.

Real estate stocks stole the limelight today, with DIG, NVL, DXG, LDG, PDR, and KHG among the 10 most actively traded stocks on the southern market.

DIG took the lead by liquidity with more than 47.5 million shares matched, while NVL secured the third position with a trading volume of 36.9 million shares.

The matching volume of DXG, LDG, PDR, and KHG ranged from nearly 15.1 million shares to 26.3 million shares.

The northern bourse saw 111 advancers and 76 decliners. The HNX-Index of the Hanoi Stock Exchange closed up 0.76 points, or 0.33%, from the session earlier, reaching 230.95 points.

The total trading volume of the northern market stood at 113.37 million shares valued at VND1.7 trillion.

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