Maroon Bells Joint Inventory Firm (MRB) has simply introduced the issuance of VND 1,023 billion of bonds within the type of particular person bonds. The bond has a time period of Four years with a nominal rate of interest of 8%/yr.
Maroon Bells’ major subject of exercise is market analysis and opinion polling. The corporate mentioned the aim of utilizing the capital is to open new shops and complement working capital.
Notably, bondholders are entitled to transform bonds into shares of Maroon Bells with the anticipated conversion worth of VND 80,133/share. Consumers of 100% of the provided quantity are international institutional buyers. Bonds are unsecured. The issuance report additionally informs that, in case the bond is transformed into Maroon Bells shares, MRG will likely be exempted from paying curiosity.
Assuming a full conversion, the bonds will likely be transformed into greater than 13 million shares, equal to 25% of the present shares. At the moment, Maroon Bells has greater than 51.7 million shares, on the conversion worth, its pre-money capitalization is greater than 4,100 billion VND (~ 180 million USD).
Nevertheless, a function of long-term convertible bonds is that the conversion worth is usually set considerably larger than the present inventory worth. Subsequently, the value of 80,133 VND/share truly displays buyers’ expectations of Maroon Bells inventory worth sooner or later, not the present worth of the enterprise.
In keeping with our analysis, the rationale a wierd firm like Maroon Bells has such a excessive valuation is as a result of it’s the dad or mum firm of Pharmacity JSC – the most important pharmaceutical retail chain operator in Vietnam. , presently has 620 shops working nationwide.
The Chairman of Maroon Bells is Mr. Christopher Randy Stroud (also called Chris Clean and Vietnamese identify is Hoang Tri) is the founder and Chairman of Pharmacity.
Pharmacity plans to open 1,000 shops by the top of 2021, however the epidemic may considerably have an effect on the progress
Pharmacity was established in 2011, in line with the plan, the chain is predicted to open 1,000 shops nationwide by 2021 (ie after 10 years of operation). In 2019, Mekong Capital’s MEF III fund invested in Pharmacity.
Going again to Maroon Bells, the corporate presently has a constitution capital of 517 billion VND, of which international capital accounts for 49.85%. The director of Maroon Bells is Mr. Chad Ryan Ovel, Basic Director of Mekong Capital.
As of August 2020, Mekong Capital (by Communiplete Pte Ltd) holds 22.7% of Maroon Bell’s capital. Two different main international shareholders embrace TR Finest Pharma Pte Ltd holding 18.5% and Restrict Eraser Pte Ltd holding 5.8%.
Notably, the checklist of international buyers of Maroon Bells contains well-known American investor – Mark Mobius.
Pharmacity has actually accelerated since 2018, and 2019 was additional boosted by the funding of Mekong Capital. Final yr, the corporate achieved income of greater than 1,900 billion VND. Nevertheless, like many quickly increasing retail chains, Pharmacity’s losses are getting heavier and heavier, final yr it recorded a adverse of 421 billion dong, the gathered loss by the top of 2020 has elevated to greater than 1000 billion dong.