HEV plans 2025 capital increase with private share placement

Higher Education and Vocational Training Books Joint Stock Company (HEV) has announced a plan to increase its charter capital in 2025 through an additional share issuance. The company's current charter capital stands at VND 10,000,000,000, with 1,000,000 outstanding shares. The plan proposes to issue up to 4,000,000 new shares, bringing the total outstanding shares to 5,000,000 and increasing the charter capital to VND 50,000,000,000. The expected offering price is VND 13,070 per share, determined by the book value from the audited 2024 financial statement.

The offering will be a private placement to professional securities investors, aiming to supplement resources for business activities and other lawful operations. The estimated proceeds of VND 52,280,000,000 will be primarily allocated to investment and business activities (VND 35,000,000,000 from 2025-2027), supplementing working capital (VND 10,280,000,000 from 2025-2026), and office rearrangement (VND 7,000,000,000 from 2025-2026). The issuance is expected to be completed within 2025, following regulatory approval.

While the issuance may dilute earnings per share (EPS), the company anticipates the new capital will support its business plans and profitability. Assuming a completion date of September 30, 2025, and a 2025 after-tax profit of VND 500,000,000, the expected diluted EPS would be VND 250 per share, down from a non-diluted EPS of VND 500 per share.