Nam Kim Steel Joint Stock Company (HoSE: NKG) has just announced the Board of Directors' resolution on approving the registration documents for offering additional shares to the public for existing shareholders.
Previously, the Board of Directors of Nam Kim Steel Company planned to offer a maximum of 131.6 million shares to existing shareholders. The offering price is VND12,000/share. The number of additional shares issued is not subject to transfer restrictions. The expected implementation time is from the third quarter to the fourth quarter of 2024, after approval by the State Securities Committee.
With the above additional issuance quantity and offering price, Nam Kim Steel is expected to raise nearly VND 1,580 billion. The entire amount raised will be used to contribute capital to Nam Kim Phu My Steel Company Limited to invest in the Nam Kim Phu My Steel Sheet Factory project, with disbursement time from the fourth quarter of 2024 to the first quarter of 2025.
The above project was granted the first investment registration certificate on February 6, 2024. The factory specializes in manufacturing other metal products, producing steel sheets such as galvanized steel sheets, aluminum-zinc alloy coated steel sheets (cold-rolled steel sheets), painted aluminum-zinc alloy coated steel sheets, painted galvanized steel sheets; producing iron, steel, and cast iron.
The project is located on Road No. 1, My Xuan B1 - Dai Duong Industrial Park, My Xuan Ward, Phu My Town, Ba Ria - Vung Tau Province. The total investment capital of phase 1 (excluding VAT) is 4,500 billion VND, the investor's capital structure is 30% (1,350 billion VND) and 70% is debt (3,150 billion VND).
The project scale includes a galvanizing line of 350,000 tons/year, two aluminum-zinc alloy plating lines of 300,000 tons/year and 150,000 tons/year, and a color plating line of 150,000 tons/year.
This project is expected to help Nam Kim Steel improve its competitiveness, boost revenue and stabilize profit margins by taking advantage of low steel production costs in Vietnam. The main product of Phu My Steel Plant is galvanized steel used in household electrical appliances, which requires higher production techniques than Nam Kim's current galvanized steel products (mainly used in construction).
Nam Kim Phu My Factory is expected to go into commercial production from the first quarter of 2026 and reach 100% capacity from 2027. As of June 30, 2024, Nam Kim Steel has contributed VND 500 billion to Nam Kim Phu My Steel Company Limited to implement the project.
This is also Nam Kim Steel's largest investment in a subsidiary. In addition, the company also poured VND79 billion into Nam Kim Steel Pipe One Member Co., Ltd.; VND37.5 billion into Nam Kim Chu Lai Steel Pipe One Member Co., Ltd.; VND138.4 billion into MAE MYUNG Paper Vietnam Co., Ltd.
All four companies are 100% owned by Nam Kim Steel.
