Foreign room opened up thanks to private issuance, foreign investors spend more than 400 billion VND to buy MBB

Foreign investors bought nearly VND428 billion worth of MBB shares by agreement in the first trading session on April 10. This bank's shares are often full of foreign room but have recently had more room thanks to a private placement.

The stock market right from the beginning of the trading session on April 10 witnessed negotiated trading orders of nearly 20 million MBB shares of the Military Commercial Joint Stock Bank (MBBank, code MBB- HoSE) at prices of VND24,720/share, VND24,960/share and VND25,650/share. The total transaction value was up to VND428 billion. With the above huge transaction, MBB was also the stock that foreign investors bought the most on April 10.

Notably, all of these transactions were purchased by foreign investors from domestic investors. MBB is a stock that is always in a state of full foreign room and is also a familiar “face” in the VN Diamond basket.

Huge deal transaction appeared in MBB stock session on April 10.

Previously, on March 14, the Military Bank completed a private offering of 73 million shares at VND15,959/share, raising more than VND1,165 billion. Of which, Viettel Military Industry and Telecommunications Group bought 43 million shares and the remaining 30 million shares were sold to the State Capital Investment Corporation (SCIC).

The private offering to domestic investors does not affect the bank's maximum foreign ownership ratio, which is 23.2351%. This is also the reason why foreign investors have more room to buy shares but also quickly fill the "room" gap within the session.

Previously, Vietnam Securities Depository and Clearing Corporation announced the issuance of the 18th amended Securities Registration Certificate No. 67/2011/GCNCP-VSDC-18 dated April 8, 2024. Accordingly, starting from April 10, 2024, VSDC will accept custody of the new shares issued privately above.

MB is expected to hold the 2024 Annual General Meeting of Shareholders on April 19, which is also the end of the 2019-2024 term to open the new 2024-2029 term. In 2024, the Bank expects pre-tax profit to grow by 6-8%. With the level achieved in 2023 of VND 26,306 billion, consolidated pre-tax profit in 2024 is expected to reach from VND 27,884 billion to VND 28,411 billion. Credit is forecast to grow by 15-16% in 2024, depending on the State Bank's limit. Mobilization in 2024 depends on capital needs. Meanwhile, the bad debt ratio will be controlled below 2%, the capital adequacy ratio will comply with Basel II, at a minimum of 9%.

At the General Meeting, the bank's Board of Directors will submit to shareholders for approval the 2023 profit distribution plan. The bank plans to use VND10,613 billion to pay dividends to shareholders, with two components, totaling 20%. First, the bank will spend VND2,653 billion to pay cash dividends at a rate of 5%. The time for paying cash dividends has not yet been announced. Second, MB will also spend VND7,959 billion to pay stock dividends at a rate of 15%, helping to increase charter capital accordingly. The implementation time of the above plan is in 2024, subject to approval by the competent authorities.

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