HANOI: Multiple listed companies on the stock market are set to announce their charter capital raising plans at the upcoming general meetings of shareholders.

       Among the listed companies, the banking group seems to have been the most eager.

       Vietnam International Bank (VIB) has attracted great attention from investors with its plans for capital increase, profit growth and bad debt reduction.

       VIB plans to increase its charter capital to over 21 trillion dong (US$918mil or RM3.8bil) through the distribution of bonus shares at the rate of 35% of charter capital to existing shareholders, and 0.7% of equity sources to employees under the Employee Stock Ownership Plan programme.

       In 2022, VIB sets a profit target of 10.5 trillion dong (RM1.93bil), an increase of 31% compared to 2021. The targets for total assets, total credit balance and capital mobilisation all increased by 30%.

       The bank also aims to control the bad debt ratio below 3%, the capital adequacy ratio calculated according to Basel II standards above 10%. The return on assets and return in equity are expected to be 2.4% and 29.5%, respectively.

       In April, many banks will hold their general meetings of shareholders, announcing information on capital increases and business targets. Asia Commercial Joint Stock Bank will submit to shareholders a plan to increase capital through stock issuance.

       The bank plans to pay dividends in 2021 at the rate of 25% in shares.

       Similarly, at the beginning of 2022, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (VCB) issued more than 1.02 billion shares to pay dividends from the remaining profit in 2019 to increase charter capital to more than 47.3 trillion dong (RM6.22bil).

       This year, VCB will continue to submit another plan to increase charter capital.

       Bank for Investment and Development of Vietnam has just also completed its plan to raise charter capital to 50.59 trillion dong (RM9.34bil). The bank is also set to issue 341.5 million new shares, equivalent to 8.5% of charter capital through public offering or private placement to continue raising charter capital.

       In the group of securities companies, many “huge” capital raising plans have also been released. For example, Saigon-Hanoi Securities Joint Stock Company has just been approved by the State Securities Commission to issue shares to existing shareholders at a ratio of 1:1 at the price of 12,000 dong (RM2.21) per share to increase capital to 6.5 trillion dong (RM1.19bil).

       Having just doubled its capital, APG Securities Joint Stock Company is expected to submit to the 2022 Annual General Meeting of Shareholders a plan to increase its capital to more than four trillion dong (RM738.21mil). — Vietnam News/ANN