The Viet Nam Technological and Commercial Joint Stock Bank (Techcombank) on Thursday held an extraordinary shareholders’ meeting to approve a plan to supplement its charter capital.

The plan outlines an increase to nearly VND34.97 trillion (US$1.53 billion) from the bank’s equity. Techcombank’s charter capital currently stands at nearly VND11.66 trillion, and the increase of over VND23.31 trillion corresponds to over 2.33 billion shares expected to be issued with a par value of VND10,000 per share.

The total number of Techcombank shares after raising capital will be about 3.5 billion shares.

As a result of the increase, shareholders will receive more shares at a ratio of 1:2 for each share, with each shareholder receiving two new shares. The charter capital increase procedure will be completed in July in accordance with the law.

The issuance of shares will be implemented in the third quarter of this year. The plan is expected to help increase liquidity, facilitate trading on the floor by shareholders and investors, and provide the bank with more capital sources for growing reinvestment in the coming years.

The purpose of the capital increase is to share benefits with shareholders by dividing retained earnings, equity surplus, and charter capital reserve.

Nguyen Le Quoc Anh, general director of Techcombank, said this was a good time to increase charter capital as Techcombank had completed the sale of treasury shares to international investors and officially listed on the HCM Stock Exchange (HoSE). The bank has also used retained earnings for many years to implement its 2016-20 strategy, focusing on building a solid foundation to generate revenue and profits and reduce risks.

Techcombank will continue to focus on banking development strategy in the near future to achieve business results consistent with sustainable growth goals approved by the Board of Directors and shareholders, Anh said. — VNS