Asia Commercial Bank (ACB)’s Annual general Meeting has approved the plan to raise its charter capital to VND12.377 trillion from current VND9.377 trillion, the local online newspaper Nguoi Lao Dong reported.
The lender will issue 300 million new shares in two tranches. In the first tranche, ACB will issue shares to pay 2011 dividend and allocate bonus shares to its existing shareholders at 1-for-10 ratio. The remaining shares will be offered to shareholders at 1-for-5 ratio in the second tranche.
The bank has planned to use VND663 billion from undistributed profit, VND274.7 billion from provision fund and over VND2 trillion from surplus of its IPO proceeds to issue the new shares.
This year, ACB was classified into Group I and allowed to expand credits by at most 17 percent. The lender targets to reap a profit of VND5.5 trillion in 2012 and to pay 2012 dividends at equivalent to VND2,660/shares. The bank also plans to open 66 new branches and transaction offices nationwide and prepare to expand its operation outside the country.
In 2011, ACB’s consolidated net profit rose 39 percent to VND3.2 billion from VND2.3 trillion in 2010. The HCM City-based lender had total assets of VND281 trillion by the end of 2011, against VND206 trillion at the beginning of the year.