AgriS (SBT) Plans Preferred-to-Common Share Conversion, Boosting Charter Capital

Overview

AgriS (SBT), the sugar subsidiary of Thanh Thanh Cong Group, plans to convert over 21.6 million preferred shares issued in 2019 into nearly 34.6 million common shares at a 1:1.6 ratio. The conversion, proposed by Chairwoman Dang Huynh Uc My, will increase charter capital by VND 129.7 billion to approximately VND 9.41 trillion. The plan will be submitted to an extraordinary shareholder meeting for the 2025-2026 fiscal year.

Key Facts

• AgriS (SBT) proposes converting 21,610,000 preferred shares into 34,576,000 common shares at a ratio of 1:1.6.
• The conversion increases charter capital by VND 129.7 billion, from VND 9.280 trillion to VND 9.410 trillion.
• The issuance uses VND 216.1 billion from preferred share value and VND 129.7 billion from share premium, with no new cash proceeds.
• The sole preferred shareholder is Chairwoman Dang Huynh Uc My, who holds all 21.6 million preferred shares.
• Converted common shares are freely transferable, with no lock-up restrictions.
• The conversion is expected to be completed before December 31, 2026, pending regulatory approval from the State Securities Commission (SSC).
• The extraordinary shareholder meeting will also vote on the re-election of Chairwoman Dang Huynh Uc My and CEO Thai Van Chuyen to the board.

What Happened

AgriS (SBT) announced it will seek shareholder approval at an extraordinary meeting for the 2025-2026 fiscal year to convert all outstanding preferred shares issued in 2019 into common shares. The preferred shares, held exclusively by Chairwoman Dang Huynh Uc My, carry dividend preference and conversion rights. The conversion ratio of 1:1.6 means each preferred share converts into 1.6 common shares.

The company stated that the conversion will not generate new cash proceeds, as the issuance uses the existing preferred share value (VND 216.1 billion) and share premium (VND 129.7 billion) to fund the capital increase. The converted common shares will be freely tradable, potentially increasing the free float. The plan is subject to SSC approval and must be completed by end-2026.

Market Context

SBT shares closed at VND 20,750 on July 24, 2026, on the HOSE. The stock has been under pressure from weak sugar prices and high inventory levels in the domestic market. The conversion, while not raising new cash, strengthens the equity base and removes the overhang of preferred shares, which may improve corporate governance and liquidity. The move comes as the sugar sector faces headwinds from imported sugar and falling global prices.

Strategic Significance

The conversion simplifies SBT’s capital structure by eliminating a class of preferred shares that carried dividend preferences. This could enhance the company’s appeal to institutional investors who prefer a straightforward equity structure. Chairwoman My’s decision to convert her preferred shares into common shares signals alignment with common shareholders and may reduce perceived governance risks. The increase in charter capital also provides a larger equity base for future borrowing or partnerships.

What to Watch

• Shareholder approval at the extraordinary meeting (date to be announced).
• SSC filing and approval timeline; any delays could push conversion past the 2026 deadline.
• Post-conversion trading volume and price action as new common shares enter the market.
• Q3 2026 earnings report for SBT to assess operational performance amid sector challenges.
• Any further capital-raising plans or M&A activity by AgriS or its parent Thanh Thanh Cong Group.