Thaco to issue new shares representing 10% of Thaco Auto

On June 28, Mr. Nguyen Hung Minh, Vice Chairman of the Board of Directors of the Truong Hai Auto Corporation (Thaco), announced that the corporation, together with its advisory unit, the Ho Chi Minh City Securities Corporation (HSC), is working on a plan to issue new shares to strategic investors, of up to 10 per cent of Thaco Auto’s capital.

At the same time, shares in the employee share ownership program (ESOP) of Thaco in 2018 will be converted to make Thaco Auto a public joint stock company, with plans to be listed on the stock market within the next three years. The capital raised from this new share issuance will be used to serve production and business activities as well as expand the retail network and develop new products of Thaco Auto in the near future.

Responding to information from a foreign newspaper saying that “Thaco has a manufacturing plant in Hung Yen,” Mr. Minh affirmed: “That is incorrect information, because all automobile production activities of Thaco Auto are conducted at the Chu Lai Industrial Park in Quang Nam province and there is no production elsewhere.”

Domestic and foreign investors are currently researching and negotiating with Thaco. It is expected that this new share issuance will be completed this year.

In Vietnam, Thaco Auto has been the market leader in terms of sales and market share. It has exported cars to ASEAN countries and the world, with more than 1,400 units of all kinds in 2020, including the Kia Grand Carnival passenger car, to Thailand; the Kia Cerato and Kia Soluto passenger cars to Myanmar; semi-trailers to the US, Japan, Myanmar, Thailand; and trucks to Cambodia.

Thaco Auto is also a leading manufacturer and exporter of spare parts and mechanical components. It posted export turnover for spare parts and mechanical components of $17 million in 2022, an increase of 25 per cent compared to 2019. Main exports included car bumpers, wiring harnesses, leaf springs, seat covers, condenser units, bus components, and composite components, etc., with main export markets being South Korea, Japan, Malaysia, Italy, and Russia.

The Thaco Group is a conglomerate operating in multiple industries, including automobiles, agriculture, mechanical and technical support, investment and construction, trade and services, and logistics. As of the end of 2022, its total equity stood at $2 billion, an increase of nearly $84,6 million in one year. This is the first time the Thaco Group has announced its financial status since the company revoked its public company status in May 2021.