The Vietnam Technological & Commercial Joint Stock Bank (Techcombank) expects to mobilize VND5 trillion ($220.34 million) from shareholders in 2017.

Techcombank is one of a few banks setting up plans to increase charter capital from existing shareholders.

The content of its plan to does not, in general, differ from the previous version submitted to the annual general meeting (AGM), but the offering period is expected to be extended to all of 2017, from only the second and third quarters.

500 million shares are to be issued at a minimum price of VND10,000 ($0.44) per share. If the deal is successful, Techcombank’s charter capital will increase from VND8.8 trillion ($387.69 million) to VND13.8 trillion ($607.96 million).

This is the largest capital increase Techcombank has made since 2008. From 2008 to 2012 its charter capital increased regularly, from VND4.7 trillion ($207.07 million) to VND8.8 trillion ($387.69 million).

All proceeds from the share offer are expected to be invested in the VND916 billion ($40.35 million) expansion of its head office and fixed assets. It will also spend VND1.6 trillion ($70.5 million) on technology and equipment.

The bank will also increase its capital for credit activities and investment in government bonds, to some VND2.4 trillion ($105.76 million).

Techcombank’s pre-tax profit was VND1.3 trillion ($57.29 million) in the first quarter of this year, up 130 per cent year-on-year and representing 26.3 per cent of the 2017 plan.

VN Economic Times