Annual General Shareholders Meeting of VPBank will be held on March 19th, at Melia Hotel, Hanoi. At the meeting, VPBank will present important documents, including CEO report, BOD report, Report of Supervisory Board, 2018 business plan.
Specifically, the meeting will discuss profit distribution plan and charter capital increase plan by issuing stock dividend, issuing shares to local and international investors in private placements, issuing shares to staff members under employee stock ownership plan (ESOP), buying treasury shares, amendment of VPBank’s charter and license.
In 2018, VPBank targets its profit before tax of VND 10,800 billion, up 33% from 2017.
With this target, VPBank plans to increase its charter capital from VND 15,706 billion (including common shares of VND 14,974 and preferred shares of VND 732 billion) to VND 27,000 billion.
The plan for raising charter capital includes followings batches: Issuance of shares for dividend payments and issuance of shares using reserve to supplement charter capital; Issuance of shares to VPBank staff under ESOP; Private placement for local and foreign investors to raise charter capital; Distribute capital surplus.
The bank plans to make dividend payments in the form of common shares by utilizing retained profit after allocating profit in 2017 and issue common shares to raise capital from owner’s equity. The total distribution ratio is about 31%/total common shares.
Also in the 2nd quarter, VPBank plans to raise its charter capital in the form of ESOP. The total face value of shares issued is expected to be nearly VND 337 billion, equivalent to 4.14% of consolidated profit before tax in 2017.
Besides, in the third quarter, VPBank plans to use share premium (VND 1,287 billion) and investment fund (VND 1,201 billion) to purchase preferred shared to be treasury shares and use such treasury shares to distribute bonus shares to its shareholders. Total preferred share to be purchased as treasury share is about 73 million shares.
VPBank will conduct private placement for local and foreign investors to raise charter capital. The maximum offer is about 15% of total common shares at the time of issuance.
The last batch of raising charter capital will be implemented in the fourth quarter by distributing bonus shares from capital surplus gain after the 2017 private placement. Total surplus distributed to common shareholders is expected to be more than VND 4,577 billion. After surplus distribution, the charter capital will be raised to VND 27,799 billion.
With the tentative VND 12 trillion capital surplus as results of the abovementioned actions, VPBank plans to use VND 8,500 billion to raise mid-long term capital to serve credit growth.
In 2018, besides stock dividend and bonus shares from reserve to supplement charter capital of VND 4,679 billion, equivalent to the distribution ratio applicable to common shares of 30%, shareholders will also receive bonus shares from capital surplus of VND 4,577 billion, equivalent to the distribution ratio applicable to common shares of 32%. Additionally, shareholders will have opportunity to own bonus shares after the bank purchase preferred shares to be treasury shares, equivalent to the distribution ratio applicable to common shares of 4.9%. Hence, the total distribution ratio of dividend and bonus shares to common shares is equal to 67%.