HCMC – Kido Group (KDC) is planning to offload its entire 28 million treasury shares worth an estimated VND1.785 trillion.
According to a decision recently approved by Kido’s management, the company will sell over 28 million treasury shares, equivalent to 10.05% of the total volume issued, to raise funds for business and manufacturing, the local media reported.
The treasury shares will be traded via matching or put-through deals. The sale comes at a time when the share price is surging.
Since mid-May to date, the price of KDC shares has been on the rise. KDC is trading at around VND63,500 per share, up 27% against two weeks ago.
Last year, Kido distributed nearly 22.9 million treasury shares to its existing shareholders.
In the first quarter of this year, Kido made nearly VND2.9 trillion in consolidated net sales, up 24% compared to the year-ago period. The rise in sales was attributed to the firm’s increase of production capacity and expansion of distribution channels.
However, its after-tax profit in the first quarter declined over 10% at around VND120 billion, mostly due to a sharp increase in selling and administrative expenses.
As for its performance on the local stock market, KDC closed 2.36% higher at VND65,000 today, June 8.
The benchmark VN-Index on the Hochiminh Stock Exchange improved 1.28% against the previous session at 1,307.91, with 389 winners and 80 losers.
The southern bourse saw 584 million shares valued at VND16.7 trillion changing hands, down 13% in volume and 6% in value over the session earlier. Shares traded in block deals contributed around VND1 trillion to the total value.
On the Hanoi bourse, the HNX-Index ended on an upbeat note. It gained 6.78 points, or 2.23%, versus yesterday at 310.93.