Bamboo Capital (BCG) changes its name and pushes activities based on the Group concept

DNHN - Bamboo Capital Group Joint Stock Company (HoSE: BCG) officially announced the new name on September 5, 2022. (the former name was Bamboo Capital Joint Stock Company).

According to the company, the name change to Bamboo Capital Group is intended to simplify the process of connecting with partners and customers when trading and doing business in the direction of developing the company in a new and more favourable period in the process of finding investment opportunities, expanding the market, and ensuring long-term development.

Bamboo Capital, in reality, has functioned as a multi-industry private business since its reorganization in 2019. Bamboo Capital serves as the parent company, and the companies listed below are in charge of commercial activities in five areas: renewable energy, real estate, construction - infrastructure, manufacturing, and financial services - insurance.

Bamboo Capital has more than 50 member businesses and associates as of June 30, 2022; the name change is an essential move to improve its position, correctly reflecting the Group's scale, nature, and structure of operations.

Bamboo Capital has selected three strategic spearheads in business segments: renewable energy (BCG Energy), real estate (BCG Land), financial services, and insurance (BCG Financial and AAA Insurance).

Bamboo Capital Group is now working to complete the appropriate processes for the IPOs of BCG Land and BCG Energy in late 2022 and early 2023. BCG Land's income is estimated to increase by VND 5,000 - 5,400 billion in 2022, with a profit after tax of around 1,400 billion dongs, owing mostly to the accounting of the Malibu Hoi An and Hoi An d'Or resort projects. Meanwhile, with around 600MW of solar power currently in commercial operation, BCG Energy has a solid source of income; BCG Energy's revenue target for 2022 is VND 1,660 billion, with a profit of VND 997 billion.

Bamboo Capital would issue more than 266.7 million shares to current shareholders at a 2:1 ratio, according to the proposal adopted by the 2022 General Meeting of Shareholders. The estimated sale price is 10,000 VND per share, with total proceeds exceeding 2,667 billion VND.

In addition, Bamboo Capital Group intends to auction off 250 million shares to public investors. The beginning price is at least 70% of the average reference price of BCG shares on the stock market for 30 consecutive trading days before the day the Board of Directors decides on the offering.

Bamboo Capital completed the issuance of 25 million shares to pay dividends in 2021 and 5 million shares under the ESOP program in 2022 at the end of August. On September 22, the Company is projected to continue spending VND 250 billion on cash dividends to shareholders.

Thus, following the issue of dividend-paying shares in 2021, bonus shares under the ESOP program, and the foregoing two issuances, Bamboo Capital's charter capital would rise from VND 5,033 billion to almost VND 10,500 billion.

According to the CEO of Bamboo Capital, the major purpose of capital mobilization is for the Group to have more resources to generate more revenue and profit, as well as create better value for shareholders. If just the existing operational initiatives are considered, the Group's capital is enough. However, to capitalize on more market possibilities and fully realize the Group's potential, Bamboo Financial must continue to strengthen its capital capacity.

Bamboo Capital expects net sales of VND 7,250 billion in 2022, up 280% from 2021; profit after tax will be VND 2,200 billion, up 220%. Bamboo Capital earned VND 2,133.9 billion in revenue and VND 877.1 billion in profit after tax at the end of the first six months of 2022. Bamboo Capital Group's leaders are confident in completing the business strategy because the end of the year is when substantial revenue from real estate projects is recorded.

Xuan Cuong