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 the plan to issue shares under the employee stock option program (ESOP).

Specifically, SHB will offer 45.12 million ESOP shares at VND10,000/share. The expected issuance ratio is 1.25% of the outstanding shares. These shares will be restricted from transfer within 18 months from the end of the issuance.

The amount of money raised from the ESOP share issuance is expected to be VND451.2 billion, which will be used to supplement capital for SHB's lending, investment and credit activities. Of which, VND50 billion will be for personal loans and VND401 billion for corporate loans. The expected disbursement time is in the third and fourth quarters of 2023 or until the issuance procedures are completed according to regulations.

The issuance subjects are SHB employees according to the list approved by the Board of Directors, including managers, experts, assistants to the Board of Directors, assistants to the Board of Directors, secretaries to the Board of Directors, secretaries to the Board of Directors and equivalent positions who have signed official labor contracts at SHB for 12 months or more;

Specialists/employees and equivalent positions who have signed an official labor contract of 24 months or more at SHB as of May 15, 2023. The principle of stock distribution is determined based on groups of factors including work efficiency (80% of issued ESOP shares) and working seniority (20% of issued ESOP shares).

The odd shares will be distributed to the Chairman of SHB Trade Union. Undistributed shares after the issuance (if any) will be redistributed to other SHB employees at the same price offered to employees according to the original list.

Finance - Banking - SHB is about to issue more than 45 million ESOP shares to employees — SHB stock price movements in the past 3 months (Photo: TradingView).

In the market, in the morning trading session on October 6, SHB stock price fluctuated at 10,500 VND/share. Thus, the price of shares offered 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 pay dividends in 2022. Accordingly, 552,014,917 shares were distributed to 69,056 shareholders. The odd number of shares of 23,258 shares will be canceled.

Thus, through the above issuance, SHB has increased the number of shares to more than 3.6 billion, corresponding to SHB's charter capital increasing to nearly 36,194 billion VND. It is expected that after issuing ESOP, SHB's charter capital will continue to increase to 36,645 billion VND.

Thu Huong

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