Why are investors rushing to sell Dat Xanh Group's stocks?

Dat Xanh Group has just announced that it will offer more than 150 million shares to existing shareholders, at a price of 12,000 VND/share. Immediately, the stock pair DXG and DXS reacted very negatively.

Mr. Luong Tri Thin is the founder of Dat Xanh Group since 2003 - Photo: DXG

At the end of the session on December 24, DXG shares of Dat Xanh Group decreased by the entire amplitude (floor price) to 16,450 VND/share.

Investors massively sold off DXG shares, at the end of the session there were still nearly 15.3 million units left to sell, while buyers left everything "empty".

DXG's total trading volume today reached more than 53 million units, the highest in the past year. In addition, this sudden volume is also more than four times the average session of the past year.

DXS shares of Dat Xanh Real Estate Services Joint Stock Company also had a similar development, hitting the floor price of 7,200 VND.

More than 6 million DXS shares were traded during today's session. However, the selling pressure was too great, closing the session there were still nearly 1.6 million units left to sell, with no buyers.

Dat Xanh shares hit the floor right after Dat Xanh Group announced the offering of more than 150.1 million shares to existing shareholders, at a price of VND12,000/share, through the exercise of purchase rights.

The entire amount expected to be collected from the additional offering of shares to existing shareholders of more than VND 1,801 billion will be used to contribute capital to the subsidiary Ha An Real Estate Investment and Trading Joint Stock Company and to pay other obligations and payable expenses.

Of which, DXG will use VND 1,559 billion to contribute capital to Ha An Real Estate Investment and Trading Joint Stock Company (subsidiary) through two "grandchild" companies: Hoi An Invest Joint Stock Company (VND 802 billion) and Ha Thuan Hung Construction - Trade - Service Company Limited (VND 757 billion).

The remaining amount was allocated by DXG to pay off 221 billion VND in bonds and nearly 22 billion VND to pay FPT Corporation.

Regarding Dat Xanh, the State Securities Commission recently signed and issued Decision No. 1375 on administrative sanctions in the securities sector against this company, due to issues related to capital use.

Specifically, DXG must pay a fine of up to 350 million VND for changing the capital usage plan and the amount of money collected from the public offering of securities.

According to the Securities Commission, on March 4, 2024, Dat Xanh used VND 36.56 billion out of the total of more than VND 1,220 billion collected from the offering to pay off loans to Ha An Real Estate Investment and Trading Joint Stock Company but without going through the general meeting of shareholders.

In addition to paying the money, DXG must also remedy the consequences by forcing the nearest general meeting of shareholders to change the purpose or plan for using the money raised from the public offering of securities according to regulations.

Source: https://tuoitre.vn/vi-sao-nha-dau-tu-o-at-ban-thao-co-phieu-ho-dat-xanh-20241224154658723.htm