VinFast issues nearly 690 million dividend preferred shares

According to the National Information Portal on business registration, on May 19, Production and Trading Joint Stock Company VinFast (VinFast) increased capital to VND 57,380 billion from VND 56,497 billion due to issuance of VND 88.3 million share dividend preference.

At the beginning of the year, VinFast also issued 600 million dividend preferred shares to increase capital from VND 50,497 billion to VND 56,497 billion. Accordingly, the share structure of VinFast recorded more than 5 billion ordinary shares, accounting for 88%; dividend preference shares reached 688.3 million units, rate 12%.

With the new charter capital, VinFast is still the company with the largest capital scale in the ecosystem Vingroup (HoSE: VIC) and ranked above the enterprises with the largest capital in the stock market such as BIDV, VietinBank, VPBank, Hoa Phat….Besides the stock exchange, Vietnam still has enterprises with charter capital over 100,000 billion VND Viettel, PVN, EVN, Formosa Ha Tinh…

The amount of dividend preferred shares issued to domestic shareholders, so the largest shareholder VinFast Trading & Investment Ptl.Ltd – a subsidiary of Vingroup, headquartered in Singapore, reduced its ownership from 99.9% to 87. 9% capital of VinFast. The number of shares of the electric car company that VinFast Singapore owns is entirely ordinary shares, accounting for 99.9% of the total number of ordinary shares.

According to the provisions of the Enterprise Law 2020, dividend preferred shares are paid a higher dividend than ordinary shares or a stable annual rate regardless of the company’s business results. Shareholders owning dividend preference shares do not have the right to vote, attend the General Meeting of Shareholders or nominate people to the Board of Directors and Supervisory Board.

With being in the investment phase and suffering losses, VinFast has never paid dividends.

VinFast Trading & Investment Ptl.Ltd (VinFast Singapore) was established with the goal of receiving VinFast capital transfer from Vingroup and other shareholders, then proceeding to an IPO in the US market.

Before the restructuring, Vingroup owned 51.5% of the VND 50,497 billion charter capital of VinFast, the rest was owned by Mr. Pham Nhat Vuong – Chairman of Vingroup and related organizations and individuals. Specifically, Vietnam Investment Group Joint Stock Company holds 48.4% and Mr. Pham Nhat Quan Anh and Mr. Pham Nhat Vuong own 0.05% each.

Recently, Vingroup has successfully raised USD 525 million in bonds to invest in the VinFast car production complex project.