BIDV pays dividends in shares, plans to increase charter capital to VND57,004 billion

The Board of Directors of Vietnam Joint Stock Commercial Bank for Investment and Development ( BIDV - HoSE: BID) has just passed a Resolution on approving the plan to increase charter capital through issuing shares to pay dividends from remaining profits after tax and setting up funds in 2021.

Specifically, BIDV plans to issue a maximum of 641.9 million common shares with a par value of VND10,000/share, representing 12.69% of outstanding shares to existing shareholders listed on the bank's list at the time of dividend entitlement.

The source of capital for implementation is from the remaining profit after tax, after setting aside funds in 2021. The expected issuance time is in the fourth quarter of 2023. In 2021, BIDV's profit after tax is VND 10,072 billion. The remaining profit after setting aside funds is VND 6,474 billion.

The State Bank of Vietnam, which owns 80.99% of charter capital, is expected to receive nearly 520 million additional shares from this issuance.

The increased charter capital is expected to be used entirely to supplement business capital, allocated to BIDV's business areas with a reasonable structure and ensuring effective capital use.

In particular, BIDV will focus on restructuring its credit portfolio, lending capital to enterprises with healthy financial status, effective and safe business operations, with feasible business plans/projects, prioritizing small and medium enterprises (SMEs), FDI enterprises with development potential; promoting green credit growth, retail credit.

Continue to invest effectively in the market; invest and trade in valuable papers, and invest in units according to the roadmap.

At the same time, enhance the application of information technology in operations to bring the best utilities and services, meet the needs of domestic and international customers, devote resources to developing products and services for the wealthy customer segment, increase the proportion of service income in total income; improve management and risk management capacity...

Expand and improve the quality of modern distribution channels domestically, regionally and internationally associated with developing the BIDV brand.

The total issuance value at par value is expected to be approximately VND6,419 billion. After the issuance, BIDV's charter capital increased from VND50,585 billion to VND57,004 billion.

Previously, BIDV's 2023 Annual General Meeting of Shareholders also proposed a plan to increase charter capital to more than VND61,557 billion by issuing shares to pay dividends.

In addition, BIDV will continue to issue or offer to the public more than 455 million shares in accordance with the Plan approved by the 2022 Annual General Meeting of Shareholders (expected to be 9% of charter capital as of December 31, 2022). Charter capital under this plan will increase by VND 4,552 billion.

In the market, in the morning session of October 12, BID shares are being traded around 42,300 VND/share with constantly increasing trading liquidity .

Thu Huong

Source: https://www.nguoiduatin.vn/bidv-tra-co-tuc-bang-co-phieu-du-tang-von-dieu-le-len-57-004-ty-dong-a630722.html