Licogi 16 poured investment capital for phase 2 of Chu Ngoc – Gia Lai solar power plant project

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Currently, Licogi 16 is expected to raise 50 billion dong through offering 50 million shares to existing shareholders at the price of 10,000 dong/share. Licogi 16 will deduct VND 146 billion of this total to pour into Chu Ngoc – Giai Lai Solar Power Plant project phase 2.

The Board of Directors of  Licogi 16 JSC (Code: LCG) has just approved the capital contribution to Licogi 16 Gia Lai Renewable Energy Investment JSC (LCE Gia Lai), a subsidiary in the field of electricity production that Licogi 16 owns 97% shares.

According to this resolution, LCE Gia Lai will issue more than 20 million shares to existing shareholders at the price of 10,000 VND/share to raise charter capital from 125 billion VND to 327 billion VND. Purpose of raising capital to implement phase 2 of Chu Ngoc –  Giai Lai solar power plant project with a capacity of 25 Mwp.

Therefore, Licogi 16 will spend more than 196 billion VND to contribute capital to LCE Gia Lai, equivalent to more than 19.6 million shares of LCE Gia Lai. After the release, Licogi 16’s ownership percentage in the subsidiary will not change.

Chu Ngoc solar power project in Chu Ngoc commune, Krong Pa district. (Photo: Licogi 16).

According to Locigi’s leader, although there are currently concerns about the development of solar projects in a rush, the risk of excess, not consuming all but in the development roadmap of the country, the trend of developing renewable energy is irreversible.

Licogi 16 has oriented renewable energy as the core field for LCG to continue to develop in both the role of investor and EPC general contractor.

Last year, Licogi 16 completed 2 solar power projects: Chu Ngoc – Giai Lai plant, phase 1 with a capacity of 15 Mwp ​​and Nhon Hai – Ninh Thuan project.

As planned, this year, Licogi 16 will focus on restructuring the existing energy project. The enterprise is preparing to invest in 4 wind power projects including Thang Hung project in Gia Lai with a capacity of 100 Mwp, 2 projects in Quang Tri with a capacity of 96 Mwp and a project in Gia Lai with a capacity of 100 Mwp.

In addition, the enterprise also made a list of floating solar and offshore wind power projects to propose investment in Giai Lai, Binh Phuoc, Ninh Thuan.

Regarding the business situation, in the first 6 months, Licogi 16 recorded net revenue of 1,306 billion dong, up 3.6% over the same period last year; EAT is 132 billion dong, up 67% thanks to increased gross profit of some projects and strong profit margin of real estate segment.

In 2021, Licogi 16 sets a revenue target of VND 3,600 billion and a profit of VND 300 billion. Thus, the company has fulfilled 36% of the year’s revenue target and 44% of the year’s profit target.

As of June 30, Licogi 16 recorded cash and short-term deposits at banks worth VND 266 billion out of total assets of more than VND 6,400 billion.

Currently, Licogi 16 is borrowing more than 1,100 billion VND. The company is planning to raise more capital for projects and pay down debt through offering 50 million shares to existing shareholders, at the price of 10,000 VND/share. Exercising ratio is more than 11.5 : 5, corresponding to more than 11.5 shares will be entitled to buy 5 new shares.

According to the initial estimate, the expected amount of money from the offering is 500 billion dong, the company plans to use 204 billion dong to pay off debt; 150 billion VND to invest in Long Tan Residential Project and 146 billion VND to invest in the second phase of Chu Ngoc Solar Power Plant Project.

Source: vietnambiz.vn – Translated by fintel.vn