Mr. Le Viet Hai’s company plans to issue shares to nearly 100 creditors

The plan was presented by Hoa Binh Construction Group (stock code: HBC) in its annual meeting documents later this month.

The issuance price to swap liabilities is 10,000 VND per share. This level is nearly double the average price of the last 30 trading sessions of HBC on the Hanoi stock exchange, and far exceeds the book value of the stock calculated according to last year’s consolidated financial report (5,638 VND).

In the presentation sent to shareholders, HBC’s board of directors said they had negotiated with creditors on a plan to swap debt into shares before agreeing on the issuance price. If successful, the total debt swap will be approximately VND 470 billion. Creditors are restricted from transferring shares for one year from the date of completion of the issuance.

According to the list published by Hoa Binh, the creditor expected to exchange the most is Matec Construction Machinery Joint Stock Company with more than 9.2 million shares. The remaining creditors range from tens of thousands to 3 million shares.

Last year, Hoa Binh approved a plan to issue a maximum of 347 million shares to have money to pay off bank loans and debt to contractors and suppliers. However, the new board of directors proposed to shareholders to stop this plan due to “the unfavorable market situation and changes in capital needs”. Instead, the company chose to swap debt into shares.

By the end of the first quarter of this year, Hoa Binh had about VND 14,275 billion in liabilities.

In the annual report published last month, Chairman of the Board of Directors Le Viet Hai said the company had gone through a period of “strengthening its strength” after the lasting consequences of the pandemic and global geopolitical fluctuations. The company lost trillions of billions in two consecutive years (2022 and 2023), then gradually recovered with profits of VND 960 billion and VND 251 billion in the last two years, respectively.

The head of Hoa Binh said the current situation had “bright spots appearing in the sky like dawn breaking”. As of the beginning of this year, the total value of forward contracts (backlog) has reached approximately VND 10,000 billion, creating the foundation for the 2026 revenue plan and maintaining continuity for the next stages. Backlog quality also improved significantly thanks to a more diverse project portfolio and recognition of many strategic customers.

Hoa Binh aims to collect 10,000 billion VND this year, more than double last year, while profit after tax is expected to remain at 250 billion VND. In the first quarter of the year, the company collected 1,322 billion VND and profit after tax was 23 billion VND.

HBC shares closed the first trading session of the week at 4,900 VND. Market capitalization reached 1,700 billion VND.