PGBank plans to increase charter capital to VND5,000 billion in the third quarter of 2025

Prosperity and Development Joint Stock Commercial Bank (PGBank – UPCoM: PGB) has just announced the Board of Directors' Resolution approving the implementation of the plan to increase charter capital by issuing shares to existing shareholders.

Accordingly, PGBank plans to issue up to 80 million additional shares with a par value of VND10,000/share to existing shareholders to increase charter capital by VND800 billion, from VND4,200 billion to VND5,000 billion.

The distribution ratio is 21:4, meaning that every 21 purchase rights will be worth 4 new shares. The expected time for issuing shares to increase charter capital is in the third quarter of 2025. The specific issuance time will be decided by the Board of Directors in accordance with the approval of the State Bank and the State Securities Commission.

The purpose of issuance is to supplement capital for purchasing fixed assets, building facilities; investing in software upgrades, investing in information technology and computer equipment; improving financial capacity, expanding business operations; improving the safety ratio in banking operations and supplementing working capital in banking operations.

PGBank plans to use 65 billion VND of the entire proceeds from the issuance of shares to increase charter capital to supplement capital for purchasing fixed assets and building facilities;

230 billion VND to invest in software upgrades, IT infrastructure and IT equipment and 505 billion VND in loans to meet customers' capital needs.

By March 2024, PGBank had completed distributing 120 million bonus shares to shareholders at a rate of 40%, equivalent to shareholders owning 10 shares receiving 4 new shares.

The capital issued from accumulated undistributed profit after tax and the reserve fund to supplement charter capital according to the audited financial report for 2022 is VND 1,200 billion. After completing the issuance of bonus shares, PGBank's charter capital has increased from VND 3,000 billion to VND 4,200 billion.

PGBank's plan to increase charter capital has been implemented since 2023. At the end of November 2023, PGBank's Board of Directors approved the plan to increase charter capital by issuing shares.

PGBank's decision to increase charter capital took place in the context that the bank has officially changed its commercial name to Prosperity and Development Joint Stock Commercial Bank.

This is also the first time PGBank has increased its capital after more than a decade of standing still at VND3,000 billion. The last time the bank increased its charter capital was in 2012, when the bank issued VND640 billion worth of new shares to existing shareholders, equivalent to 64 million shares.

On the stock market, in the morning session of May 29, PGB shares were trading around 18,000 VND/share with a trading volume of 5,780 units .

Source: https://www.nguoiduatin.vn/pgbank-du-kien-tang-von-dieu-le-len-5-000-ty-dong-trong-quy-iii-2025-a665848.html