Construction 1369 (C69) Fully Deploys VND 300B Private Placement

Overview

Construction 1369 (C69) has completed the deployment of all VND 300 billion raised from a private placement of 30 million shares. The funds were allocated across land clearance, M&A, bank debt repayment, and working capital, with the final structure approved by the board in June 2023. This capital increase doubled the company’s charter capital to VND 600 billion, supporting its expansion and financial restructuring.

Key Facts

• C69 issued 30 million shares at VND 10,000 per share, raising VND 300 billion in total.
• Charter capital increased from VND 300 billion to VND 600 billion.
• Land clearance allocation was reduced from VND 75 billion to VND 15 billion, used for a project in Thái Học, Hải Dương (now Đường An, Hải Phòng).
• M&A spending remained at VND 112 billion, used to acquire a stake in TNHH Tư vấn và Xây dựng Đông Á.
• Bank debt repayment was raised from VND 78 billion to VND 128 billion, covering loans at Agribank, BIDV, VietinBank, ACB, and VIB.
• Working capital allocation increased from VND 35 billion to VND 45 billion for supplier payments.
• As of July 8, 2024, the entire VND 300 billion had been fully used.

What Happened

Construction 1369 (C69) announced the completion of its private placement proceeds usage in a report to shareholders. The company issued 30 million shares at VND 10,000 each, raising VND 300 billion, with the goal of doubling its charter capital to VND 600 billion. The initial capital use plan, approved by the 2021 AGM, was later revised under Resolution No. 08/2023/NQ-HĐQT dated June 29, 2023.

The revised plan shifted funds away from land clearance (down to VND 15 billion) and toward bank debt repayment (up to VND 128 billion). The M&A budget remained at VND 112 billion for acquiring a stake in TNHH Tư vấn và Xây dựng Đông Á. Working capital was increased to VND 45 billion. As of July 8, 2024, the company confirmed full disbursement of the proceeds.

Market Context

C69 trades on the HNX, with its stock closing at VND 16,600 on August 18, 2026. The construction sector in Vietnam has faced headwinds from slow public investment disbursement and high interest rates, but C69’s capital deployment signals a focus on debt reduction and strategic acquisitions. The company’s move to increase bank repayment suggests a deleveraging strategy, which could improve its financial health and appeal to risk-averse investors.

Strategic Significance

The full deployment of the private placement proceeds marks a milestone in C69’s growth strategy. By allocating VND 112 billion to M&A, the company is expanding its business footprint through the acquisition of Dong A Construction Consultancy, which could provide synergies in project execution. The increased debt repayment (VND 128 billion) reduces interest burden and financial risk, potentially improving profitability. The remaining funds for land clearance and working capital support ongoing projects and operational liquidity. For long-term investors, this disciplined capital allocation reflects management’s commitment to strengthening the balance sheet and pursuing growth opportunities.

What to Watch

• Quarterly earnings reports to assess the impact of debt reduction on net interest expense and profitability.
• Integration progress and revenue contribution from the Dong A Construction Consultancy acquisition.
• Updates on the Thái Học project land clearance and development timeline.
• Any further capital raises or M&A activities that could dilute or enhance shareholder value.
• Changes in the company’s debt levels and working capital efficiency in the next fiscal year.