Approved by the State Bank of Vietnam (SBV), Asia Commercial Joint Stock Bank (ACB) plans to issue more than 374 million shares to increase its charter capital by VND3.74 trillion ($162.6 million) to reach VND16.6 trillion ($721.74 million).
The SBV has just released document No.5171/NHNN-TTGSNH about authorising ACB to increase charter capital, valid for 12 months from the signing date. Accordingly, the SBV approved ACB to increase its charter capital from VND12.89 trillion ($560.43 million) to VND16.6 trillion ($721.74 million) following the plan approved by the 2019 general shareholders' meeting.
The SBV required ACB to increase its charter capital in accordance with the law, complying with the law on shareholders' ownership limits in accordance with the law, supervise the transfer of shares of foreign shareholders to ensure that ACB and foreign shareholders comply with the prescribed ownership limits.
At the annual shareholders' meeting in 2019, a plan to pay dividends by shares at the rate of 30 per cent was approved (shareholders will receive 3 shares after every 10 they own), equivalent to issuing 374 million additional shares, thereby increasing the charter capital by VND3.74 trillion ($162.6 million) to VND16.6 trillion ($721.74 million).
According to the proposed plan, ACB will use more than VND2 trillion ($86.96 million) of the total additional capital for credit activities, investment in government bonds, ensuring operational safety indicators, and supplementing medium and long-term capital. The remaining more than VND1.7 trillion ($73.91 million) will be used to purchase more assets, basic construction, and tools to serve the operations of its branches.