HCM City-listed Bao Viet Holdings plans to issue 53.89 million shares in an effort to increase the group's financial capacity.
The issue would be aimed at existing shareholders at a rate of 8.6 per cent. The shares will be offered at VND12,000 a piece and listed on the HCM City Stock Exchange after completion of the issuance.
It is expected to be implemented in this quarter of and would help Bao Viet increase it's charter capital from VND6.26 trillion (US$329.8 million) to VND6.80 trillion ($357.4 million).
Le Quang Binh, Chairman of Bao Viet Holdings, said the mobilised capital would be used to enhance their core businesses of non-life insurance, banking and securities.
Furthermore, Binh said, the capital would be used to invest in several finance projects, as well as on training and upgrading infrastructure.
The insurance group projects a post-tax profit of VND848.3 billion ($44.6 million) this year, on which it would base a dividend payment of 11 per cent. Last year, Bao Viet achieved VND807.78 billion ($42.5 million) worth of post-tax profit.