Kinh Bac City Development Holding Corporation (HOSE: KBC), chaired by prominent Vietnamese businessman Mr. Dang Thanh Tam, has approved a private placement plan to issue 250 million common shares at a price of VND 23,900 per share. The move is expected to raise nearly VND 6 trillion (approximately USD 235 million).
The offering price was determined at 80% of the average closing price over the 30 trading sessions prior to April 1, 2025, rounded for simplicity. The shares will be restricted from trading for 12 months after issuance, except for transfers between professional securities investors or in accordance with legal rulings.
The targeted buyers for the placement are exclusively professional investors, including a number of major institutional names. A preliminary list includes Dragon Capital’s DC Developing Markets Strategies PLC, Prudential Vietnam Life Insurance, SGI Fund, VPBank Securities, Samsung Vietnam Securities, Vietnam Enterprise Investments, and Amersham Industries Limited. Additionally, four high-net-worth individual investors are expected to acquire between 35 and 39 million shares each.
Use of Proceeds: Debt Restructuring and Project Investment
According to KBC’s capital utilization plan, the proceeds from this issuance will primarily support debt restructuring and working capital needs. The company intends to restructure up to VND 6.09 trillion in liabilities in 2025.
This includes: VND 4.428 trillion for principal and interest payments owed by Saigon – Bac Giang Industrial Park JSC. VND 1.462 trillion for debts held by Saigon – Hai Phong Industrial Park JSC. Over VND 105 billion to settle loans from VietinBank. VND 160 billion to supplement working capital.
Strategic Partnership with The Trump Organization
Notably, this capital raise aligns with KBC’s commitment to an ambitious urban and tourism development project in Hung Yen province, where it plans to contribute approximately VND 5.968 trillion (USD 235 million).
In April, Mr. Dang Thanh Tam signed a board resolution approving KBC’s participation in the investment proposal and its role as an investor in the Khoai Chau Urban, Eco-Tourism, and Golf Complex project. The total capital for this project is estimated at USD 1.5 billion.
The project, to be developed by KBC’s subsidiary — Hung Yen Investment and Development Group JSC — is part of a strategic cooperation with The Trump Organization, the real estate empire of former U.S. President Donald Trump and his family.
Set to become the first Trump-branded development in Vietnam, the project will carry the name Trump International Hung Yen, marking a significant milestone in both U.S.–Vietnam business collaboration and KBC’s international expansion ambitions.
KBC will present this initiative, along with other key strategic matters and transactions with its Hung Yen subsidiary, to shareholders during its upcoming 2025 Annual General Meeting, expected to take place later this month.
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Source: Vietnam Insider