CBI Plans VND 888B Private Placement for Na Rua Iron Mine; PC1 Nominee Joins Board

Overview

Gang thép Cao Bằng (UPCoM: CBI) held an extraordinary shareholders’ meeting on 8 October 2026 and put forward a private placement of 88.8 million shares at VND 10,000 each, targeting VND 888 billion for the North Na Rua iron mine. The meeting also proposed electing Phan Ngoc Hieu, Vice Chairman of PC1, to the CBI board in place of Trinh Van Tuan, who was indicted in May 2026. The placement would more than double CBI’s share count and reshape the shareholder register of a company tied to one of northern Vietnam’s largest iron ore projects.

Key Facts

• Private placement of 88.8 million shares at VND 10,000 per share, raising VND 888 billion (about USD 35.5 million).
• The offer price is roughly 33% below CBI’s 8 October 2026 close of VND 14,900 on UPCoM.
• Issuance size is about double the current 43 million shares outstanding; charter capital would rise from roughly VND 430 billion to VND 1,318 billion.
• Total capital need for the 2026-2030 Na Rua project is estimated at VND 3,109 billion, of which VND 1,948 billion is compensation and site clearance and VND 1,161 billion is overburden removal and ore extraction.
• VND 323 billion is budgeted for construction investment in 2026, mainly for the Na Rua mine.
• The 2026-2030 business plan targets revenue above VND 14,100 billion and pre-tax profit of nearly VND 507 billion.
• The company proposes adding real estate and stone, sand, gravel and clay mining to its business lines.

What Happened

According to meeting documents presented to shareholders, the entire VND 888 billion raised will fund compensation and site clearance at the North Na Rua iron mine during 2026-2027. Management described clearance as a survival-critical task for production, with the company aiming to secure feedstock for the Cao Bang steel complex through the fourth quarter of 2027. In 2027-2028, CBI plans to contract outside parties for drilling, blasting, loading and hauling of overburden and iron ore at the North mine.

On personnel, the documents state that Phan Ngoc Hieu, Vice Chairman of PC1, was the only candidate meeting the conditions for election to CBI’s board for the remainder of the 2022-2027 term. Shareholders were also asked to remove Trinh Van Tuan from the board following his indictment in May 2026. The article does not disclose the size of PC1’s stake in CBI or the terms of any agreement between the two companies.

Market Context

CBI closed at VND 14,900 on 8 October 2026 on UPCoM, putting the proposed VND 10,000 placement price at a steep discount to the prevailing market level. PC1, the listed parent of the broader PC1 group, closed at VND 18,900 the same day. The transaction sits within Vietnam’s basic resources and steel complex, where domestic producers remain exposed to imported ore and coking coal prices and to the pace of public investment in northern industrial projects. A placement priced below market can pressure the reference price if the shares are listed, and the near-tripling of charter capital would dilute existing holders who do not participate.

Strategic Significance

The placement is best read as a funding milestone for the Na Rua mine rather than a balance-sheet repair: clearance spending of VND 1,948 billion is the single largest line in the VND 3,109 billion project budget, and the VND 888 billion raise covers only part of it. For long-term holders, the thesis rests on whether CBI can convert ore reserves into captive feedstock for its steel complex by late 2027, reducing dependence on purchased ore. The board change matters because it deepens PC1’s representation at CBI at a moment when the group’s own leadership has faced legal disruption, giving PC1 a direct channel into a project that could supply its steel operations.

What to Watch

• Disclosure of the placement’s subscriber list and any change in PC1’s ownership percentage in CBI.
• The exact date and record date for the share issuance, and whether it requires further regulatory approval.
• Progress reports on North Na Rua land clearance and the 2026 construction spend of VND 323 billion.
• Resolution of the legal case involving Trinh Van Tuan and any further board changes at CBI or PC1.
• CBI’s next financial statements for evidence that the 2026-2030 revenue and profit targets are being met.