Tasco (HUT) Extends VND 3,561B Convertible Bond Offering to January 2027

Overview

Tasco Joint Stock Company (ticker HUT, listed on HNX) has extended the subscription and payment period for its public offering of more than 35.6 million convertible bonds, code HUT426001, to 11 January 2027. The move keeps open a raise of roughly VND 3,561 billion that the company intends to deploy into subsidiaries and project investments. The extension matters for HUT shareholders because the conversion terms imply substantial future dilution at a strike price below the current market level.

Key Facts

• Offering size: more than 35.6 million convertible bonds, code HUT426001, unsecured and without warrants.
• Issue price: VND 100,000 per bond; targeted proceeds of approximately VND 3,561 billion (about USD 142.4 million).
• Subscription ratio: 30:1, meaning 30 existing shares carry the right to buy one bond; the shareholder list was finalised on 16 October 2026.
• Original payment window ran from 21 October 2026 to 10 November 2026; the deadline is now 11 January 2027, and the transfer of subscription rights runs to 5 January 2027.
• Coupon: fixed at 10% per year for the first two interest periods, then floating at 3.5% per year plus a reference rate for each subsequent period.
• Tenor: five years, with interest calculated over consecutive six-month periods from issue to maturity.
• Conversion: 1:10, each bond converting into 10 ordinary shares at VND 10,000 per share, executed across five conversion tranches.

What Happened

Tasco’s Board of Directors approved an adjustment to the timetable for exercising subscription rights in the public convertible bond offering to existing shareholders, according to the company’s disclosure. The shareholder register for the exercise of rights was closed on 16 October 2026. Under the previous schedule, investors were to register and pay from 21 October 2026 through 10 November 2026. The board resolution pushes the payment deadline to 11 January 2027 and extends the period for transferring subscription rights to 5 January 2027.

The proceeds are earmarked for investment and capital contributions into subsidiaries, as well as direct investment in programmes and projects or cooperation arrangements conducted through those subsidiaries. The filing does not disclose which specific projects will receive the funds, nor does it state how much of the offering has been subscribed to date. Separately, Tasco appointed Nguyễn Danh Hiếu as Deputy General Director effective 23 October 2026, with remuneration and authority set under the company charter and applicable law.

Market Context

HUT closed at VND 12,400 on 2 November 2026 on HNX. That price sits above the VND 10,000 conversion price, meaning bondholders converting at the strike would book a paper gain relative to the prevailing share price, a structure that typically supports take-up but weighs on the existing share count. Tasco sits at the intersection of real estate and infrastructure through its project investments, and the convertible structure lets it raise long-dated capital without immediate dilution. The extension of the payment window suggests the company is giving shareholders more time to fund subscriptions rather than closing the book on the original November deadline.

Strategic Significance

The 10% fixed coupon for the first two periods is costly relative to bank funding, but the five-year tenor and the 1:10 conversion feature give Tasco a route to equity that does not depend on a single placement window. For long-term holders, the key variable is the conversion price: at VND 10,000, full conversion of 35.6 million bonds would add roughly 356 million shares, a material increase in the share count that dilutes per-share metrics unless the capital is deployed into assets earning above the cost of the debt. The floating leg after the first year, priced at 3.5% plus a reference rate, transfers interest-rate risk to the company if reference rates rise.

What to Watch

• Disclosure of the final subscription and payment results after the 11 January 2027 deadline, including the take-up rate.
• Any announcement identifying the specific subsidiaries or projects receiving the VND 3,561 billion in proceeds.
• The reference rate used for the floating coupon from the third interest period onward.
• HUT share price relative to the VND 10,000 conversion price ahead of the first conversion tranche.
• Further board resolutions on the offering timetable if the extended deadline is not met.