Tasco (HUT) Sets October 15 Record Date for VND 3,561B Convertible Bond Offering

Overview

Tasco (ticker HUT, listed on HNX) has approved a public offering of more than 35.6 million convertible bonds at a par price of 100,000 VND each, targeting gross proceeds of nearly VND 3,561 billion (about USD 142.4 million). The record date for existing shareholders to register their purchase rights is October 15, 2026. The issue is the largest single capital-raising event announced by the company this year and will fund investment and capital contributions into subsidiaries and projects.

Key Facts

• Issue size: 35.6 million convertible bonds, code HUT426001, unsecured and without attached warrants.
• Offer price: 100,000 VND per bond; total expected proceeds of approximately VND 3,561 billion.
• Subscription ratio: 30:1, meaning 30 existing shares confer the right to buy one bond.
• Record date: October 15, 2026; subscription and payment window runs from October 20 to November 9, 2026.
• Term and coupon: five-year tenor, 10% per year fixed for the first two six-month interest periods, then floating at 3.5% per year plus a reference rate.
• Conversion terms: one bond converts into 10 common shares at 10,000 VND per share, executed across five conversion tranches.
• HUT closed at 12,400 VND on October 7, 2026, above the 10,000 VND conversion price.

What Happened

Tasco’s Board of Directors issued a resolution approving the 2026 public distribution plan for convertible bonds, according to the company’s disclosure. The bonds are being offered exclusively to existing shareholders, who receive one purchase right per share held, with every 30 rights entitling the holder to subscribe for one bond. The company expects to complete the issuance in a single tranche.

The proceeds are earmarked for investment and capital contributions into subsidiaries, as well as direct investment in programmes and projects, or participation through subsidiaries and project investment partnerships. The filing does not disclose a detailed allocation of the proceeds by project. The bond carries no collateral and no attached warrants, and the conversion price of 10,000 VND per share sits roughly 19% below HUT’s October 7 close of 12,400 VND.

Market Context

HUT trades on the HNX, Vietnam’s smaller northern exchange, and sits in the automobiles and parts industry classification, though Tasco’s operations span automotive distribution, insurance and infrastructure services. The stock closed at 12,400 VND on October 7, 2026, meaning the 10,000 VND conversion price is set at a discount to market, a structure that gives bondholders immediate embedded equity value if the share price holds. The offering follows a strong first half: Tasco reported audited interim 2026 net revenue of nearly VND 22,190.8 billion, up 44.6% year on year, and after-tax profit of approximately VND 310.5 billion, up 171.9%. Total assets reached more than VND 54,698.2 billion at June 30, 2026, with total liabilities of over VND 36,622.9 billion.

Strategic Significance

The bond structure lets Tasco raise long-dated capital at a fixed 10% cost for the first year without immediate share dilution, while the 10,000 VND conversion price effectively pre-prices future equity issuance at a level below today’s market. For long-term holders, the key question is whether the proceeds generate returns above the blended cost of the bond, particularly given the company’s already elevated liabilities of more than VND 36,600 billion. The 30:1 ratio means minority shareholders must commit meaningful incremental capital to avoid dilution when conversion occurs across the five tranches. The floating coupon from the third period onward also transfers interest-rate risk to the issuer, a consideration if reference rates rise.

What to Watch

• Subscription take-up during the October 20 to November 9, 2026 payment window, which will show shareholder confidence in the conversion terms.
• Disclosure of the specific project and subsidiary allocation of the VND 3,561 billion proceeds.
• The first conversion tranche schedule and any resulting change in HUT’s charter capital and share count.
• Q3 2026 earnings, to test whether the 44.6% revenue growth and 171.9% profit growth seen in H1 continue.
• Any update on total liabilities, which stood at more than VND 36,622.9 billion at June 30, 2026, relative to the new debt raised.