SeABank stops plan to offer individual shares to Norfund

Southeast Asia Commercial Joint Stock Bank (SeABank - HoSE: SSB) has just decided to stop implementing the private offering plan according to Resolution No. 271 dated May 8, 2023 and Resolution No. 422 dated July 3, 2023 of the Board of Directors.

SeABank's Board of Directors will report to the nearest General Meeting of Shareholders about stopping the implementation of this private share offering plan.

According to SeABank, the decision to stop the private share offering plan is not only based on the law but also on the actual situation.

This decision of the bank took place in the context of the stock market, in the last 2 sessions, SSB shares have been on a downward trend. At the end of the session on November 10, SSB shares stopped at 23,800 VND/share, recording a decrease of more than 20% in the past 3 months with an average trading liquidity of 1.2 million shares per session.

Finance - Banking - SeABank stops plan to offer individual shares to Norfund — SSB stock price movements in the past 3 months (Photo: TradingView).

Previously, SeABank planned to issue 295.2 million shares to pay dividends in 2022, issue more than 118 million shares to increase capital from equity, and privately offer 94.6 million shares and 42 million ESOP shares.

For the private offering of 94.6 million shares at a rate of 4.63%, SeABank offers a price not lower than the book value in the audited 2022 separate financial report of VND 12,861/share. The expected highest offering price is VND 37,032/share. The specific offering price is decided by the Board of Directors depending on the negotiation and agreement process with investors.

The offering is for professional securities investors, specifically The Norwegian Investment Fund for developing countries (Norfund) of Norway. The shares offered privately are subject to a transfer restriction of at least 1 year from the date of completion of the offering.

After the private offering, SeABank's charter capital is expected to increase by VND946 billion to VND25,483 billion. The bank intends to use the proceeds from the offering of VND1,216.65 billion to supplement capital for business operations (VND1,095 billion), invest in infrastructure to develop the information technology system and expand the network (VND121.6 billion).

The offering time is in 2023 or another time decided by the Board of Directors based on suitable market conditions .

Thu Huong

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