On January 10th, 2022, An Phat Bioplastics JSC. (Ticker symbol: AAA) successfully organized the Extraordinary General Meeting of Shareholders to approve the plan of offering 100 million shares with the starting price is $ 0.53/share (VND 12,000/share) by the public auction method.
Accordingly, AAA will issue an additional number of shares in order to increase the charter capital in 2022. Following the method of public auction via the Ho Chi Minh Stock Exchange, the price of AAA shares will not be technically adjusted after the offering. An Phat Bioplastics JSC. expects to generate approximately $ 53 million (VND 1.200 billion) in capital, which will be distributed for paying of short-term and long-term debts and for a supplement working capital to improve the company’s production and business.
The starting auction price from $ 0.53/share (12.000 VND/share) was determined by a combination of book value and market price. According to the latest audited or reviewed separate financial statements, this price consists of approximately 80,67% of the company’s book value and 69,40% of the market value of AAA shares being currently traded.
In early 2021, AAA auctioned successfully 75 million of AAA shares, with an average winning price of $ 0.63/share (VND 14.236 /share), which was higher than the beginning price of $ 0.62/share (VND 14.000 /share). There were almost 82,6 million shares available for purchase, with the maximum auction price of $ 0.71/share (VND 16.000/ share). AAA climbed to $ 0.88/share (VND 20.000/share) within two months after the auction.
With 20-year experience, An Phat Bioplastics JSC. is considered as the largest packaging manufacturer and exporter in Southeast Asia. In recent years, AAA changed the corporate’s vision to identifying green products as the strategic initiative, focusing on research and development, and becoming Vietnam’s first and largest compostable product manufacturer. With AnEco – biodegradable products brand, the products have been exported to many key markets such as The United State, Europe Unions, Japan… and received many prestigious international certificates of degradability, for instance TUV OK Compost HOME và OK Compost INDUSTRIAL, BPI compostable, Seedling…
In the first 9 months of 2021 report, consolidated revenue of packaging segment achieved $ 395 million (VND 8.956 billion) and profit before tax reached $ 14 million (VND 317 billion), which are respectively corresponding to the increase of 69% and 27% over the same period in 2020. Moreover, the increase in revenue of packaging segment was contributed by a rise in the price of plastic resins and from the industrial packaging segment (An Vinh Packaging JSC. – AAA bought the majority from the third quarter of 2020).
AAA’s outstanding business result was significantly contributed by a subsidiary – An Tien industries (Ticker symbol: HII) that is producing the plastic resins and additives. Due to the effective improving of resins and additives production and trade, in the first 9 months of 2021, HII experienced the excellent result in consolidated revenue of $ 242.7 million (VND 5.508 billion) and in profit after tax of $ 3.5 million (VND 79 billion), representing the growth of 88% and 89%, respectively over the same period of 2020; this result was beyond the revenue target 38% and the net profit after tax 13% in 2021. Simultaneously, the industrial real estate revived, generated in more than $ 16.6 million (VND 378 billion) in revenue, up 7.6 times over the previous year’s similar period in 2020.
Most importantly, An Phat Holdings – the parent company that owns 51% of An Phat Bioplastics, is currently constructing the largest PBAT biodegradable material factory in Southeast Asia. With the production capacity of 30,000 tons per year, 70% of PBAT products will be used to meet the green material needs of the subsidiaries, including AAA, and 30% will be traded in other target markets such as the United States, the European Union, Canada, Korea, and Australia. The PBAT An Phat factory, which is expected to operate in 2024, will help save 20-30% on the cost of producing green products while also completing the plastic industry ecosystem, making An Phat Holdings one of the few manufacturers in the world that produces both environmentally friendly – 100% compostable materials and products at the same time.