Siba Group has just listed shares on HoSE from December 2023.

Siba High-Tech Mechanical Group Joint Stock Company (Siba Group, code SBG - HoSE) recently announced its public offering of shares. This enterprise has received a certificate of registration for public offering of shares issued by the State Securities Commission.

According to the issuance plan, Siba Group plans to distribute 11.5 million shares to existing shareholders. Shareholders owning 100 shares will be able to buy 46 new shares at VND10,000/share. Currently, Siba Group has 25 million outstanding shares, equivalent to a charter capital of VND250 billion. The charter capital will increase to VND365 billion.

The company will use all of the raised money to pay off its debts to suppliers, from September to November 2024.

Previously, the company's Board of Directors approved a plan to pay stock dividends and bonus shares at a total rate of 54%, equivalent to issuing an additional 13.5 million shares and expected to be implemented in the second to third quarters of 2024. Of which, stock dividends will be paid at a rate of 22% and bonus shares at a rate of 32%.

As of June 30, 2024, Siba Group's total assets were VND 1,475 billion, up 23% compared to the beginning of the year. Siba Group uses a large financial leverage. Every VND 100 of the company's assets is financed by nearly VND 71 of debt capital. Adding capital surplus, after-tax profit, etc., Siba Group's equity as of June 30 only reached VND 429 billion. Meanwhile, liabilities are approximately VND 1,046 billion.

Siba Group was established in 2015, formerly known as Vietnam Environmental Mechanical Joint Stock Company, operating in the fields of technology, environment, health, etc. By 2022, the Company changed its name to Siba High-Tech Mechanical Group Joint Stock Company, and at the same time offered shares to the public for the first time. Currently, the Company operates mainly in the fields of mechanical engineering - construction; trade and service provision; and energy. In the third quarter, Siba Group's net revenue reached VND 1,016 billion, down 24% year-on-year. The Company's gross profit was VND 28 billion, still down 4% year-on-year, although the gross profit margin improved slightly from 2.2% to 2.8%.

Financial expenses increased by 32% to VND 8.3 billion despite a decrease in interest income, due to additional expenses in other financial expenses; sales expenses also increased by 8.4% to more than VND 4 billion and business management expenses increased by 18% to VND 7.1 billion. As a result, Siba Group reported a profit after tax in the second quarter of 2024 of more than VND 7.7 billion, down 23% year-on-year. In the first half of 2024, Siba Group recorded revenue of VND 1,877 billion and profit after tax of more than VND 11 billion, down 18% and 40% year-on-year, respectively.

In 2024, Siba Group plans to achieve revenue of VND3,800 billion, up 3.8% over the same period, and expected after-tax profit of VND40 billion, up 25% over last year. Thus, the company has only completed 49% of the revenue target and 28% of the profit target after half a year of operation.

On December 1, 2023, 25 million SBG shares were listed on the HoSE with a reference price of VND 15,000/share. Currently, SBG shares are trading at around VND 15,150/share.