On June 14th 2018, Techcombank held an extraordinary shareholder meeting in 2018. Accordingly, the bank’s shareholders agreed to increase charter capital to 34.965 trillion dong from the current 11.655 trillion dong. The source for capital increase is taken from equity.
With an expected charter capital increase of 23.311 trillion dong, the number of shares to be issued will be 2,331,061,440 ordinary shares at par value of 10,000 dong. After the issuance, the total number of Techcombank’s shares will be raised to 3.5 billion units. Each existing shareholder will receive an addition of two shares, equivalent to a 1:2 ratio.
After the capital increase, Techcombank will become one of the three listed banks having the largest charter capital in Vietnam, close to Vietcombank and surpassing BIDV.
Techcombank’s leader said that the procedures of the capital increase will be completed in July 2018. The issuance is expected to be implemented in the third quarter of the year.
The purpose of this capital raising is to share benefits with shareholders by distributing the retained earnings, equity surplus and the charter capital supplement fund. At the same time, the capital increase also helps the bank to convert its existing equity source into available capital which can be used for investment in facilities such as enhancing investment capacity in the development of modern banking technology, developing the system of head offices, operation network and business activities; helping Techcombank better meet the operational safety standards and improve operational risk management ability.
