Biwase (BWE) Sells 6.6M Unsubscribed Rights Shares at VND 37,000

Overview

Biwase (HOSE: BWE) has approved the sale of more than 6.6 million shares left unsubscribed after its rights issue, at VND 37,000 per share, to 12 investors. Nguyen Ngoc Toan is taking 6 million of those shares, a stake of roughly 2.39% and an outlay of about VND 222 billion. The placement closes out a capital raise that had been only 79% subscribed and keeps the company’s VND 1,162 billion funding plan intact.

Key Facts

• Biwase offered about 31.4 million shares to existing shareholders at VND 37,000 each under a 7:1 exercise ratio; shareholders bought nearly 24.8 million shares, or roughly 79%, raising more than VND 917 billion.
• The remaining 6.6 million-plus shares were re-offered at VND 37,000 each and allocated to 12 investors under a board resolution dated 14 September.
• Nguyen Ngoc Toan was allocated 6 million shares, about VND 222 billion at the offer price, giving him roughly 2.39% of Biwase.
• Chairman Nguyen Van Thien received an additional 187,000 shares, lifting his holding to a projected 4.72%; Deputy General Directors Ngo Van Lui and Mai Song Hao each received 30,000 shares, and Chief Accountant Nguyen Thi Mong Thuong 10,000.
• The remaining investors were allocated between 5,000 and 100,000 shares each.
• The re-offered shares carry a one-year transfer restriction from the close of the offering, with payment due from 15 September until before 17:00 on 21 September 2026.
• Full completion would raise charter capital from more than VND 2,199 billion to about VND 2,513 billion, with proceeds of more than VND 1,162 billion earmarked for Ninh Thuan Water, a 12 MW Biwase waste-to-energy plant and repayment of maturing bank loans.

What Happened

According to a board resolution dated 11 September, Biwase was authorised to offer roughly 31.4 million shares to existing shareholders. When the subscription period closed, shareholders had registered for close to 24.8 million shares, equivalent to about 79% of the offer, generating more than VND 917 billion for the company. The unplaced balance of over 6.6 million shares was then re-offered at the same VND 37,000 price.

A subsequent resolution dated 14 September allocated the entire remaining block to 12 investors. Nguyen Ngoc Toan, born in 1983, is the largest single buyer at 6 million shares. Corporate registry data links him to several businesses spanning management consulting, household goods manufacturing and handicrafts; he is Director and legal representative of JIRO JSC, founded in 2024 with charter capital of VND 270 billion, where he contributed VND 54 billion for 20%, and of CELLA Investment JSC, founded in 2025 with charter capital of VND 215 billion, where he contributed nearly VND 43 billion for 19.9%. The filing does not disclose the terms of any agreement between Toan and the company beyond the share allocation.

Market Context

BWE closed at VND 42,000 on 16 September 2026, giving the HOSE-listed water utility a market capitalisation of close to VND 10,500 billion. The VND 37,000 placement price therefore sits at a discount of roughly 12% to the prevailing market price, a typical structure for a clean-up tranche of unsubscribed rights shares. The stock trades in the Utilities sector, where Biwase is one of the larger listed water suppliers by capitalisation, and the raise is occurring against a Vietnamese market backdrop in which equity issuance has been a primary channel for infrastructure funding.

Strategic Significance

The placement matters less for the identity of the buyer than for what it completes. Biwase’s capital plan depends on the full VND 1,162 billion: more than VND 164 billion for shares in Ninh Thuan Water, VND 225 billion for phase one of a 12 MW waste-to-energy plant, and more than VND 773 billion to repay maturing bank and credit-institution loans. A 79% subscription rate would have left a funding gap; the clean-up sale closes it without repricing the offer. The waste-to-energy project is the strategic pivot, moving Biwase beyond regulated water tariffs into waste treatment and power generation, while the Ninh Thuan stake extends its provincial water footprint. The one-year transfer restriction on the re-offered shares limits near-term overhang from the new holder.

What to Watch

• Confirmation that payment for the 6.6 million shares was received by the 21 September 2026 deadline, and the resulting charter-capital update to about VND 2,513 billion.
• Disclosure of the final post-issue shareholder register, including whether Nguyen Ngoc Toan’s 2.39% stake is held directly or through a related entity.
• Progress milestones on the 12 MW Biwase waste-to-energy plant and the Ninh Thuan Water share purchase, the two growth uses of proceeds.
• Any further board resolutions on the remaining 5,000 to 100,000-share allocations to the other 11 investors.
• BWE’s next periodic earnings release for water volume, tariff and leverage trends after the debt repayment.