The Board of directors (BOD) of Southeast Asia Commercial Joint Stock Bank (SeABank) has approved the plan to increase charter capital to 12.088 trillion dong with a commitment to bring shares to the centralised stock market.
The bank said that it is continuing to work with a consultant to list shares on the HCM City Stock Exchange (HoSE) or register for trading on the Unlisted Public Company Market (UPCoM). However, the unpredictable Covid-19 epidemic has affected the bank’s listing plan. The BOD will closely monitor the market developments to register the trading at the latest in Q4.
In the case when the epidemic is unfavourable for listing or registering on the UPCoM, SeABank will promptly report the State Securities Commission and related agencies.
Along with the commitment to list shares, SeABank also plans to raise charter capital from 9.369 trillion dong to 12.088 trillion dong in two phases. In the first phase, the bank will issue 131.2 million shares to pay dividends to shareholders at a rate of 14%. The source for this is the undistributed after-tax profit in 2019.
In the second phase, the bank will offer 140.7 million shares to existing shareholders at a rate of 15.0212 percent and starting price of 10,000 dong per share. The amount of unsold shares will be decided by the BOD to other existing shareholders at a price of no less than 10,000 dong per share, and these shares are non-transferable for one year. The implementation time is in 2020.
With 2.719 trillion dong of additional charter capital, SeABank will spend 1.789 trillion on lending to corporate and individual customers in order to raise the limits related to credit granting, development of credit programmes for businesses and individuals, and expansion of medium and long-term capital source for financing projects. The bank will also spend 850 billion dong on buying bonds of credit institutions and the governments with low-risk level, and 80 billion dong on fixed assets, improving foundational systems such as information technology, infrastructure, etc.
If the charter capital increase is successful, SeABank’s consolidated capital adequacy ratio is expected to increase to 16.73 percent in 2020 from 14.81 percent in 2019. The bank’s book value by the end of the year is predicted at 11,240 dong per share.
