Techcombank will issue 70 million shares to existing shareholders at the price of VND30,000 (US$1.32) per share this month. — Photo Techcombank

Techcombank will issue 70 million shares to existing shareholders at the price of VND30,000 (US$1.32) per share this month.

The bank will close the list of buyers on October 10. The transfer of share purchase rights will take place from October 19 to November 2 and payment will be made from October 19 to November 11.

The sale is expected to bring Techcombank a total of VND2.1 trillion.

All proceeds from the share sale are expected to be invested to increase the bank’s fixed assets, expand network and update technology and equipment. The bank will also use a part of the increased capital to boost lending and investment in Government bonds.

It is one of two share sales that Techcombank has planned to raise charter capital from VND8.8 trillion to VND13.8 trillion.

In the second sale due within the next 12 months, which will be decided after the first sale’s completion, the bank will sell another 430 million shares.

Both share sales will take place for existing shareholders. Masan Group is currently Techcombank’s largest shareholder, holding 15 per cent of the bank’s charter capital.

This is the largest capital increase Techcombank has made since 2008. Between 2008 and 2012, its charter capital was increasing regularly, from VND4.7 trillion to VND8.8 trillion.

Techcombank’s after-tax consolidated profit in the second quarter of this year rose 42 per cent year-on-year to nearly VND1.13 trillion, raising its after-tax profit in the first half of this year to more than VND2.18 trillion, up 72 per cent year-on-year.

The bank’s network expansion this year has also been positive. The bank has approved plans to open branches and transaction offices in provinces of Quang Binh, Vinh Long and Yen Bai, as well as Quang Ninh and Hung Yen.

In the next few years, the bank’s Board of Directors plans to build new headquarters in Ha Noi and HCM City. — VNS