SHB plans to increase charter capital by 7,500 billion VND

Saigon - Hanoi Commercial Joint Stock Bank (SHB) has just announced a plan to increase its charter capital by an additional VND7,500 billion, with the goal of becoming one of the largest private commercial banks in Vietnam.

Accordingly,SHB plans to issue 750 million shares, equivalent to 16.32%, of which 200 million shares, equivalent to 4.35% of outstanding shares, will be offered to professional investors.

The offering price is determined by the average closing price of SHB shares in 10 consecutive trading sessions immediately preceding the date of issuance of the resolution to implement the offering plan.

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SHB will allocate capital from the issuance to provide additional working capital loans, invest in fixed assets, and increase production and business loans to implement projects.

In addition, SHB issued 459.4 million shares to existing shareholders with the right exercise ratio of 100:10 (shareholders owning 100 shares can buy 10 new shares), the offering price is 12,500 VND/share.

The total amount of money mobilized from the issuance is expected to be VND5,742 billion, specifically VND3,742 billion for loans for production, business, and project implementation; VND1,500 billion for additional working capital, fixed assets, and VND500 billion for personal consumption and home loans.

Along with 2 stock offerings to professional investors and existing shareholders, SHB will also issue 90.6 million ESOP shares to SHB employees at a price of VND10,000/share.

ESOP shares will be restricted from transfer for 18 months. The expected proceeds of VND906 billion will be used for credit activities to meet capital needs for the economy .

If the capital increase is completed, SHB is expected to have a total charter capital of VND 53,442 billion. SHB representative also affirmed that a successful capital increase will help SHB increase its capital buffer, the CAR ratio will always be maintained at a high level, far exceeding the minimum requirements of the State Bank's operational safety regulations, demonstrating the Bank's strong financial capacity and good risk tolerance.

Source: https://hanoimoi.vn/shb-voi-ke-hoach-tang-them-7-500-ty-dong-von-dieu-le-721634.html