Techcombank shareholders celebrate twice as hard.

Techcombank (HoSE: TCB), a Vietnamese commercial bank, has just announced the issuance of shares to increase its share capital from equity capital.

Accordingly, Techcombank plans to issue over 3.5 billion common shares with a par value of VND 10,000 per share. The issuance ratio is 100%; the exercise ratio is 1:1 (shareholders owning 1 share will receive 1 right to receive shares, and 1 right to receive shares will entitle them to receive 1 new share).

The final registration date for shareholders to participate in the share issuance to increase capital from equity is June 21st. The ex-dividend date is June 20th. After the issuance, Techcombank's charter capital is expected to increase by VND 35,225 billion to nearly VND 70,500 billion.

The equity capital expected to be used to increase charter capital includes undistributed after-tax profits, the charter capital reserve fund, and share premium based on the bank's audited separate and consolidated financial statements for 2023.

Previously, the State Securities Commission also issued a document notifying that it had received all the necessary documents for Techcombank's share issuance report.

On June 5th, Techcombank also implemented a plan to pay cash dividends to existing shareholders at a rate of 15% per share (shareholders owning one share will receive 1,500 VND). It is estimated that Techcombank will spend 5,283 billion VND on cash dividend payments.

At Techcombank's 2024 annual general meeting, Chairman Ho Hung Anh shared that the bank had not paid cash dividends for the past 10 years. The most recent dividend distribution in the form of shares was in 2019.

When questioned by shareholders about whether a one-time stock dividend of 100% would affect the share price, Jens Lottner stated that awarding shares to shareholders does not affect equity but merely shifts it from one part to another.

The dilution of shares may cause a slight decrease in price, but this also presents an opportunity for other investors to buy TCB shares at a suitable price. If the institution is deemed to be sound, the share price will likely rebound.

On the market, during the morning trading session on June 11th, TCB shares were fluctuating around 49,450 VND/share with a trading volume of nearly 9.3 million units .

Source: https://www.nguoiduatin.vn/co-dong-techcombank-nhan-doi-niem-vui-a667835.html