SeABank wants to increase charter capital to a maximum of 30,000 billion VND

Southeast Asia Commercial Joint Stock Bank (SeABank - HoSE: SSB) recently released documents for the 2024 Annual General Meeting of Shareholders (AGM).

Accordingly, by the end of 2023, the bank's total assets will reach VND 266,122 billion, an increase of 14.99% compared to the end of 2022. The bank recorded pre-tax profit of VND 4,616 billion, reaching 100% of the plan assigned by the General Meeting of Shareholders.

In 2024, SeABank sets a pre-tax profit target of VND 5,888 billion, an increase of 28% compared to the results achieved in 2023. After-tax profit reaches VND 4,710 billion.

Total assets: expected to grow by 10% and mobilized capital to increase by 16% compared to 2023, including sources from customer deposits, issuance of valuable papers, and financial organizations/institutions.

At the same time, SeABank's Board of Directors also submitted to the General Meeting of Shareholders a plan to increase charter capital from VND 24,957 billion to a maximum of VND 30,000 billion.

Specifically, SeABank plans to issue 329 million shares to pay dividends, at a rate of 13.1826% and issue 10.3 million shares to increase equity capital from equity at a rate of 0.4127%, increasing charter capital to VND 28,350 billion. The expected completion date is in 2024.

The source of shares issued to pay dividends is the accumulated undistributed profit after tax at the end of 2023 according to the audited consolidated financial statements of 2023 (more than VND 3,400 billion).

The source of issuing shares to increase capital from equity is the equity surplus as of December 31, 2023 according to the audited separate financial statements for 2023 (VND 106.2 billion).

SeABank will issue 45 million shares under the Employee Stock Option Program (ESOP) in 2024 to increase its charter capital by VND450 billion. The expected issuance price will be decided by the Board of Directors, but not lower than the par value of VND10,000/share.

In addition, SeABank plans to offer up to 120 million individual shares with a par value of VND10,000/share, helping to increase its charter capital by VND1,200 billion.

Issuance in one of two or both forms: private offering of shares to professional securities investors or issuance of shares to swap debt with foreign partners. Expected offering time in 2024-2025 upon approval of State agencies.

This issuance plan will replace the private issuance plan of 94.6 million shares approved by the 2023 General Meeting of Shareholders. At the end of 2023, SeABank stopped implementing the private offering plan for shares to the Norwegian Investment Fund for Developing Countries (Norfund).

According to SeABank, continuing to supplement charter capital for the bank is very necessary and important to achieve the bank's growth targets in the current period, and is the basis for continuing to improve operational capacity, promote development, and strengthen financial capacity.

SeABank also plans to buy shares in ASEAN Securities JSC so that this company will become a subsidiary of SeABank.

ASEAN Securities Joint Stock Company was established in 2006 and has a charter capital of 1,000 billion VND. The company's head office is located on the 4th, 5th, 6th and 7th floors, No. 3 Dang Thai Than, Phan Chu Trinh Ward, Hoan Kiem District, Hanoi.

SeABank's expected share ownership ratio is up to 100% of Asean Securities' charter capital at the time of implementing and executing the share purchase transaction.

The Board of Directors decides on the specific share ownership ratio of SeABank at Asean Securities to ensure that Asean Securities becomes a subsidiary of SeABank.

The Board of Directors also submitted to the General Meeting of Shareholders a plan to elect 1 additional member of the Board of Directors and 1 member of the Supervisory Board, increasing the total number of Board of Directors members to 8 and the Supervisory Board to 4.

SeABank's General Meeting of Shareholders is scheduled to be held at 8:00 a.m. on April 17 at Sheraton Grand Danang Resort, 35 Truong Sa Street, Hai Hoa Ward, Ngu Hanh Son District, Da Nang .

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