Techcombank shareholders double the joy

Vietnam Technological and Commercial Joint Stock Bank (Techcombank - HoSE: TCB) has just announced the issuance of shares to increase share capital from equity capital.

Accordingly, Techcombank plans to issue more than 3.5 billion common shares with a par value of VND10,000/share. The issuance ratio is 100%; the right exercise ratio is 1:1 (shareholders owning 1 share will receive 1 right to receive shares, 1 right to receive shares will receive 1 new share).

The last registration date to close the list of shareholders to issue shares to increase capital from equity is June 21. The ex-rights trading date is June 20. After the issuance, Techcombank's charter capital is expected to increase by VND35,225 billion to nearly VND70,500 billion.

The expected source of equity capital used to increase charter capital includes undistributed profit after tax, charter capital supplement reserve fund and equity surplus based on the bank's separate financial statements and audited consolidated financial statements for 2023.

Previously, the State Securities Commission also issued a written notice on receiving full documents reporting Techcombank's share issuance.

On June 5, Techcombank also implemented a plan to pay cash dividends to existing shareholders at a rate of 15%/share (shareholders owning 1 share receive 1,500 VND). The estimated amount of money that Techcombank spent to pay cash dividends is 5,283 billion VND.

At Techcombank's 2024 Annual General Meeting of Shareholders, Chairman Ho Hung Anh shared that the bank has not paid cash dividends for the past 10 years. The most recent stock dividend was in 2019.

When questioned by shareholders about whether a one-time stock dividend of 100% would affect the stock price, Mr. Jens Lottner said that rewarding shareholders with shares does not affect equity but only transfers from one part to another.

It may affect the stock price to be diluted, to decrease a little bit, but this is also an opportunity for other investors to buy TCB shares at a suitable price. If the organization is seen to be good, the stock price will grow again.

In the market, in the morning trading session of June 11, TCB shares were fluctuating around the price of 49,450 VND/share with a trading volume of nearly 9.3 million units .

Source: https://www.nguoiduatin.vn/co-dong-techcombank-nhan-doi-niem-vui-a667835.html