Son Ha International Corporation, listed at HCM Stock Exchange as SHI, signed a contract yesterday to sell new shares to joint-stock HD Bank.

Under the agreement, SHI will sell 1.5 million shares, or six per cent of the company’s new chartered capital, at the price of VND14,000 (US$0.73), according to SHI deputy general director Dam Quang Hung.

The sale was part of the company plan to issue 10 million new shares to increase its chartered capital to VND250 billion from the current VND150 billion.

The company will also sell another 1.5 million units to Thang Long Securities Company at the same price of VND14,000.

Of the remaining seven million shares, SHI’s existing shareholders will be eligible to acquire three million, or one new share for every three they hold, at VND12,000 each.

Four million shares will be auctioned on June 28 at the initial price of VND16,000, and those who want to buy shares via the auction should register on June 18 at the latest.

The Ha Noi-based SHI plans to develop a new factory in HCM City while enlarging the existing one in the capital city.

The company, with main products of stainless steel water tanks, wash bowls and pipes, targets this year’s net profit at VND70 billion, which is expected to rise to VND113 billion in 2011. — VNS