FLC Group’s subsidiary fined $17,200 for offering unregistered stocks

FLCHomes issued shares to swap all of outstanding shares in the Chemical and Scientific and Technical Supplies JSC, which registered a public company since June 2007 and had name changed to Biscem International Trading JSC in October 2017.

The FLC Group's subsidiary did not file a public offering document to State Securities Commission before conducting share swap with Biscem to increase its charter capital from nearly $775.000 to $51.7 million.

The real estate developer was asked to withdraw all of the offered securities and refund  money to investors with bank interest.

FLCHomes told local media that it received written documents from all of the shareholders buying shares from the above issuance, saying they did not required the refund. FLCHomes has also completed the request of the Securities Commission.

FLCHomes had planned to list shares at $1.5 each in December with stock code FHH.  Chairman of the FLC Group Trinh Van Quyet expected that FHH share price could reach $4.3 in 2020.

Chairman of FLC Group Trinh Van Quyet. File photo

With core business as a real estate as a project investor, project distributor, and project operator, the company expects average annual growth in revenue and after-tax profit of 46 percent and 60 percent, respectively after five years.

Equity is expected to increase from over $172.7 million in 2019 to over $432 million in 2024.

Total revenue in 2020 is expected to reach $216 million, three-fold higher than in 2019, and after-tax profit is to reach nearly $43.2 million, a four-fold increase. In particular, revenue from investment in real estate projects in 2020 is expected to reach over $120.7 million, accounting for nearly 60 percent of total revenue.