VPBank to issue additional shares

December 03, 2010 | 14:16

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VPBank will offer 154.3 million new common shares this month to existing shareholders at an asking price of VND14,000 per share, the bank has announced.

The offer, to be made at a ratio of 100:62.83, was expected to raise about VND2.1 trillion ($105 million), of which about VND1.7 trillion ($85 million) would be channeled into lending programmes and capital investments, the bank said.

Another VND140.2 billion ($7 million) would be spent upgrading technical systems and developing new services like internet and mobile banking and a Customers Relations Management and Contact Centre. The remaining VND290.5 billion ($14.75 million) would be used to set up a data centre and developing branches at Can Tho, Haiphong and Hue cities.

The bank's charter capital was also expected to be increased from VND2.5 trillion ($125 million) to VND4 trillion ($200 million) following this issue, bringing the bank into compliance with stricter minimum capital regulations.

The offering price, raised eyebrows among some market watchers and might sound improper at a time when other banks were finding it hard to raise capital at even the face value of their shares, said Nguyen Thanh Binh, head of the market analysis department for a Hanoi-based securities firm.

VNS

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