The Vietnam Exhibition Fair Center Jsc (VEFAC) said in a new statement it would issue 1.2 billion new shares to existing shareholders to increase its charter capital from VND1.67 trillion ($72 million) to VND13.89 trillion ($599 million).

VEFAC’s major shareholders are Vingroup (83.3 percent) and the Ministry of Culture, Sports and Tourism (10 percent).

Of the money raised, VND5.78 trillion ($249 million) will be used for the construction of the Vietnam Exhibition Fair Center in the rural district of Dong Anh, about 15 km north of Hanoi's center, which was approved by the government last year.

The existing national exhibition center on Giang Vo Street in the downtown area would be turned into a mall and housing project at an investment of VND4.1 trillion ($177 million), VEFAC said.

The rest of the proceeds will fund an urban project in Me Tri Ward, the western district of Nam Tu Liem and bolster the company’s working capital.

VEFAC earned revenues of VND70 billion ($3 million) last year and an after-tax profit of VND33 billion ($1.42 million).

Vingroup is Vietnam’s largest listed company by market capitalization. The firm has been expanding rapidly from real estate into retail, logistics, agriculture, education, healthcare, automobile and electronics sectors.