Hoa Phat Group’s chartered capital largest on Vietnam’s stock exchange

On June 21^st 2021, Ho Chi Minh City Stock Exchange (HOSE) approved the issuance of nearly 1.16 million shares of Hoa Phat Group (HPG) to pay 2020 dividend for its shareholders. The additional issuance would make Hoa Phat Group’s chartered capital increased by VND11.56 trillion from current VND33.3 trillion to VND44.7 trillion.

Earlier, on April 22, 2021, the HPG’s 2021 annual general shareholders meeting approved the plan to pay 2020 dividend at the rate of 40 per cent including 5 per cent in cash and 35 per cent in stock. After issuing shares to pay dividends, Hoa Phat Group has become the enterprise with the largest chartered capital and the most outstanding shares on the Vietnamese stock market. Since June 4, the total number of HPG’s outstanding voting shares is approximately 4.473 billion.

Hoa Phat increase of authorized capital for 2007-2021 (Unit: Billion USD)

The group’s production scale has been expanding rapidly, especially in the steel industry. It is the reason that the capital increase through years is crucial for the group to add financial resources for its key projects, serving for the long-term growth targets. In 2007-2016 period, its key project was Hoa Phat Hai Duong Steel Integrated Complex; Hoa Phat Dung Quat Steel Integrated Complex and Hoa Phat Dung Quat 2 Steel Integrated Complex in 2017-2021 period and the following years.

Hoa Phat Group has been the largest steel producer in Viet Nam with a capacity of 8 million tonnes of crude steel a year. All of its factories in Hai Duong, Hung Yen and Quang Ngai provinces have been operating at full capacity to serve for both local and international markets. Its steel sale in the first five months of the year reached 3.7 million tonnes including steel billet, construction steel, hot rolled coil steel, galvanized steel and steel pipe, increasing 70 per cent from the same period last year.

Nghi Tran