SHB is about to issue more than 45 million ESOP shares to employees.

The Board of Directors of Saigon - Hanoi Commercial Joint Stock Bank (SHB - HoSE: SHB) has passed a resolution approving the implementation of a plan to issue shares under the employee stock option program (ESOP).

Specifically, SHB will offer 45.12 million ESOP shares at a price of VND 10,000 per share. The expected issuance ratio is 1.25% of the outstanding shares. These shares will be subject to a transfer restriction for 18 months from the date the issuance ends.

The proceeds from the ESOP share issuance, expected to be VND 451.2 billion, will be used to supplement capital for SHB's lending, investment, and credit granting activities. Of this amount, VND 50 billion will be for personal loans and VND 401 billion for corporate loans. Disbursement is expected in Q3-Q4 2023 or until the issuance procedures are completed as per regulations.

The recipients of the issuance are SHB employees as approved by the Board of Directors, including managers, experts, board assistants, general director's assistants, board secretaries, general director's secretaries, and equivalent positions who have signed official employment contracts with SHB for 12 months or more;

Professionals/employees and equivalent positions who have signed official employment contracts of 24 months or more at SHB as of May 15, 2023 are eligible for the share distribution. The principle for distributing shares is determined based on factors including work performance (80% of issued ESOP shares) and seniority (20% of issued ESOP shares).

Any fractional shares will be distributed to the Chairman of the SHB Trade Union. Any shares not fully distributed after the issuance (if any) will be redistributed to other SHB employees at the same offering price as the original list of employees.

The chart shows the price movements of SHB shares over the past 3 months (Image: TradingView).

On the market, during the morning trading session on October 6th, SHB shares fluctuated around 10,500 VND per share. Therefore, the offering price of shares to employees is only slightly "cheaper" than the current market price.

Previously, in August, SHB announced the results of issuing 552,014,917 shares to distribute dividends for 2022. Accordingly, 552,014,917 shares were distributed to 69,056 shareholders. The fractional shares of 23,258 will be canceled.

Thus, through this issuance, SHB has increased its number of shares to over 3.6 billion, corresponding to an increase in SHB's charter capital to nearly 36,194 billion VND. It is expected that after the ESOP issuance, SHB's charter capital will further increase to 36,645 billion VND.

Thu Huong

Source: https://www.nguoiduatin.vn/shb-sap-phat-hanh-hon-45-trieu-co-phieu-esop-cho-nguoi-lao-dong-a629833.html