ACB may sell treasury shares to raise capital: HSC
ACB may sell treasury shares to raise capital: HSC
Asia Joint Stock Commercial Bank (ACB) plans to sell treasury shares to raise charter capital in 2019.
According to the bank’s financial report 2018, there are 41.42 million treasury shares at present.
HCM City Securities Corp (HSC) said in a recent note that the bank will likely sell those treasury shares to improve its capital adequacy ratio (CAR) by the end of 2019.
As of the end of 2018, ACB reported its overall and tier-1 CAR were 12.8 per cent and 10.6 per cent, respectively.
The figures beat the standard of 8 per cent set by the State Bank of Vietnam (SBV) for local commercial banks.
The topic will be presented and discussed at the bank’s upcoming annual shareholder meeting on April 23.
In addition, ACB will propose shareholders approve its plan to sell bonus shares in order to provide more funding for capital increase.
Other topics include the 2019 business plan, 2018 profit distribution and the code of corporate governance.
ACB will finalise the list of attending shareholders for the upcoming meeting on March 22.
ACB sold bonus shares to pay shareholders dividend in 2015-17 with payout rates of 10 per cent and 15 per cent.
The 2018 dividend payout rate approved by shareholders at the meeting last year was set at 30 per cent.
