Sai Gon-Ha Noi Bank (SHB), listed on the Ha Noi Stock Exchange under the code SHB, will issue 150 million additional shares this year and increase its charter capital from VND2 trillion ($105.3 million) to VND3.5 trillion (US$184.2 million), under a plan approved by the State Bank of Viet Nam.
The cetral bank required the issue to be finalised before SHB opens the annual shareholder meeting which is expected on March 31.
The bank will offer 100 million shares to existing shareholders at a face value of VND10,000 and at a ratio of 2:1. Another 15 million shares will be offered to employees at VND12,500 each, subject to the restrictions that the shares not be transferred within a year of purchase.
The final 35 million shares will be offered to potential strategic partners at a price expected to be set at about 70 per cent of the share's market price in five consecutive sessions prior to the bank finalising a list of buyers. Strategic partners would also be restricted from transferring the shares within three years.
The State-owned mining giant Vinacomin Group, which now holds a 15-per-cent interest in the bank, has proposed to increase its stake, according to a source that requested to remain anonymous.
Sai Gon-Ha Noi Bank is already in the process of issuing 15 million convertible bonds to raise capital for infrastructure improvements and future projects, with the bonds to be listed on the Ha Noi Stock Exchange's bond exchange once the issue has been completed.
With the bond issue, the bank expected to its increase charter capital to VND5 trillion ($270.3 million) by the end of this year.
The bank posted a profit estimated at VND405 billion ($22.5 million) last year, and reported total assets of VND22 trillion ($1.2 billion) as of last December 31.