SHB approves $134.8 million private placement

On March 10, Saigon-Hanoi Commercial Joint Stock Bank passed board resolutions to proceed with a private placement of 200 million shares to professional securities investors.

The offering price is set at $0.67 per share, with new shares constituting approximately 3.7 per cent of the bank’s projected charter capital.

The move follows approval from State Bank of Vietnam (SBV) for SHB to increase charter capital to $2.14 billion.

Expansion is supported by recent upbeat financial performance, including pre-tax profit exceeding $600 million, a 30 per cent increase. These developments contribute to SHB’s strategic goal of achieving $40 billion in total asset value.

Capital raised will be evenly divided between two core operational areas for disbursement within 2026.

Accordingly, about $67.4 million is allocated for working capital and fixed asset financing, while the remaining $67.4 million will fund production, business operations, and project implementation loans.

To maintain compliance with foreign ownership limits, SHB has structured the allocation to issue 59.48 million shares to foreign entities, representing 29.7 per cent of the offering. This ensures total foreign ownership remains within the regulatory ceiling of 30 per cent, rising from a previous level of 3.3 per cent.

The finalised list comprises 13 distinct professional institutional investors, encompassing both domestic stalwarts and prominent international funds.

Domestic institutions are positioned to absorb the majority of the issuance, led by PVI Fund Management JSC, which has committed to acquiring 62.5 million shares.

Other notable domestic participants include FPT Fund Management JSC purchasing 29.96 million shares, PVI Infrastructure Investment Fund taking 25 million shares, HPP Investment Fund absorbing 12.5 million shares, and VinaCapital Fund Management JSC acquiring 10.55 million shares.

International appetite for the venture has proven equally robust. This interest is anchored by major commitments from Hanoi Investments Holdings Ltd. and Vietnam Enterprise Investments Ltd., securing 17.5 million and 16 million shares, respectively.

Furthermore, Hanwha Life Vietnam Insurance Co., Ltd. has been allocated 12.5 million shares.

The remaining foreign allocation will be absorbed by a consortium of specialised investment funds.

Along with this, KIM Vietnam Growth Equity Fund will acquire 5.69 million shares, while TMAM Vietnam Equity Mother Fund is slated for 4.36 million shares.

Additionally, KITMC Worldwide Vietnam Balanced Fund, Samsung Vietnam Securities Master Investment Trust, and KITMC Worldwide China Vietnam Fund will collectively acquire the remaining balance to reach the foreign quota.

To ensure smooth execution, the board has authorised the chairman to finalise the investor list and oversee execution details, pending final formal approval from the SBV.

Banks gear up for massive capital increases Banks are entering an aggressive phase of capital expansion as lenders move to bolster financial strength, meet regulatory requirements, and fuel future growth.

Banks ramp up capital plans ahead of AGM season Many banks are planning significant charter capital increases during the 2026 AGM season through share issuances, stock dividends and private placements to strengthen financial capacity and support future credit growth.

SHB promotes digital solutions for corporate customers Saigon Hanoi Commercial Bank (SHB) is at the forefront of digital transformation to meet the evolving needs of corporate customers with its SHB Corporate Mobile and SHB Corporate Online digital banking platforms.