VNECO4 plans private placement to boost capital, repay loans

VNECO4 is set to execute a private placement of 2 million common shares at an offering price of VND 10,500 per share, aiming to raise VND 21 billion. This initiative, approved by the board of directors, is primarily intended to repay short-term bank loans and supplement working capital. It aims to enhance the company's financial autonomy and reduce financial pressure.

The placement will target strategic and/or professional investors, with a limit of under 100 investors excluding professional securities investors. Shares acquired by strategic investors will be restricted from transfer for three years, while professional investors face a one-year restriction. The offering is expected to take place in Q4 2025 and 2026.

The proceeds will be allocated with 70% (VND 14.7 billion) for repaying short-term loans from Vietcombank – Nghe An Branch, and 30% (VND 6.3 billion) for supplementing working capital to fund construction projects and employee compensation.