Techcombank announced its successful issuance of 52.6 million shares out of 70 million shares offered to existing shareholders to increase its charter capital as planned from the beginning of the year.
The remaining 17.3 million shares will be sold to nine individuals, of which an individual named Nguyen Duc Thuan will buy 16.9 million shares worth about VND510 billion (roughly US$22.5 million). The share will be sold at the price of VND30,000 (roughly US$1.323) per share. The transaction is expected to complete today, on November 20, 2017.
Previously, the bank announced a plan to increase its capital by VND5 trillion (roughly US$220.5 million) via two issuances of shares. Accordingly, 70 million shares were issued in the first phase and other 430 million shares will be issued in the second phase.
If this plan is completed, Techcombank's charter capital will increase to VND13,800 billion (roughly US$608.6 million). The new fund is aimed to support credit activities, fixed income investment as well as the expansion of the banking network.
Techcombank's capital raising plan was restarted after the bank successfully acquired all 172 million shares held by The Hongkong and Shanghai Banking Corporation Limited (HSBC) as treasury shares. HSBC started investing in Techcombank in 2005 with 10 per cent stake which increased to nearly 20 per cent in 2008.
In mid-2017, Masan Group, one of Vietnam’s largest private sector companies with a focus on the consumption and resources sectors, hold 30.4 per cent interest in Techcombank, including a 15.8 per cent of direct ownership stake and 14.9 per cent of the bank’s convertible bonds.
However, this figures has changed significantly after it announced to sell half of its convertible shares in Techcombank and Techcombank acquired HSBC’s shares and especially after Techcombank completes the issuance of 70 million shares in the coming time.
Techcombank currently has the total assets of VND233 trillion (roughly US$10.3 billion), ranking the same asset class with such banks as ACB, MB, SHB and VPBank. In the first nine months of this year, the bank gained VND4,840 billion (roughly US$213.45 million) of pre-tax profit, just behind three state-owned banks namely Vietcombank, Vietinbank, BIDV and VPBank.