CII converts more than 34.3 million bonds into shares

Ho Chi Minh City Infrastructure Investment (Code CII) is planning to issue a large amount of convertible bonds to restructure capital sources and reduce debt structure in the company's total capital sources.

On November 10, 2023, CII approved the conversion of 343,453 convertible bonds coded CII42013 into 34,345,300 common shares at the request of bondholders.

In the trading session on November 10, 2023, CII is priced at VND 16,950/share. Thus, the amount of shares just converted is equivalent to VND 582.2 billion.

The initial number of CII42013 bonds is 372,323 bonds. After the conversion, there will be approximately 28,870 CII42013 convertible bonds remaining in circulation on the market.

CII General Director and his wife sold all their shares to buy convertible bonds

Also related to the issuance of CII's convertible bonds, the company's shareholders have recently been stirred up by the General Director's move. Specifically, Mr. Le Quoc Binh, General Director of CII, and his wife have sold all of the more than 10 million shares they hold, reducing their ownership ratio to 0%.

During the transaction of selling more than 10 million shares of Mr. Binh and his wife from October 10 to October 23, CII shares continuously decreased in price from VND18,400/share to only VND15,600/share. Currently, although CII has recovered to the price of VND16,950/share, it has not yet recovered to the level before the General Director and his wife "dumped".

Keeping his previous promise, after selling the shares, Mr. Binh and his wife registered to buy back convertible bonds coded CII42301. Ms. Hang, Mr. Binh's wife, registered to buy 6 million rights to buy convertible bonds coded CII42301, Mr. Binh registered to buy 10 million rights to buy convertible bonds.

Bond code CII42301 was issued by CII with a face value of VND100,000/bond. It is estimated that Mr. Binh and his wife will have to spend VND162 billion to buy the registered amount of convertible bonds.

Temporarily after buying the bonds, Mr. Binh and his wife's position will change to bondholder of CII instead of shareholder position.

Q3 revenue down 65.5%

Regarding the business situation in the third quarter of 2023, CII achieved revenue of VND 761.2 billion, down 65.5% over the same period. Cost of goods sold accounted for VND 466.3 billion. Gross profit was VND 265.7 billion, down 19.2% over the same period.

Notably, financial revenue increased sharply from VND177.4 billion to VND270.6 billion, equivalent to an increase of 83.5%. On the other hand, financial expenses also increased by 15.1% to VND371.8 billion. Interest expenses alone accounted for VND267.9 billion.

Business administration expenses and sales expenses in the period accounted for VND12.9 billion and VND68.1 billion, respectively. Profit after tax in the third quarter reached VND107.3 billion, up 9.7% over the same period.

At the end of the third quarter, CII's total assets were recorded at VND26,080.6 billion, down from the beginning of the year. Total liabilities tended to decrease from VND20,258.5 billion to only VND18,022.6 billion. CII's long-term debt decreased from VND9,415.9 billion to only VND7,791.1 billion. Owner's equity was recorded at VND8,058 billion with undistributed profit after tax accounting for VND2,441.5 billion.