OCB plans to privately issue more than 882,000 shares to Aozora Bank

15-Jan-2022 Intellasia | Dau tu Online | 5:02 AM Print This Post

Orient Commercial Joint Stock Bank (OCB) plans to offer more than 882,000 individual shares to its strategic partner Aozora Bank (Japan) at the asking price of 25,571 dong per share. These shares will be restricted to transfer within one year from the end of the issuance. The release time is expected in the first quarter (Q1) of 2022.

According to OCB, the private issuance of shares to Aozora ensures the maximum foreign ownership ratio of Aozora at OCB. However, as the available foreign ownership room at OCB is currently 10 percent and the bank’s leaders said that the bank is negotiating with foreign partners to sell the remaining part, closing the foreign ownership below the ceiling limit of 30%.

The remaining important thing is price, if the two parties can agree to close this deal soon in the first half of 2022. OCB’s share price has recorded positive growth for nearly a year since its listing on the HCM City Stock Exchange on January 28th 2021.

Along with the private issuance to Aozora, OCB’s Board of directors (BOD) has also issued a resolution approving the implementation of the plan to increase capital by issuing 50 million shares under the Employee Stock Ownership Plan (ESOP).

Immediately after being approved by the State Bank of Vietnam (SBV) and the State Securities Commission and OCB completes the two above-mentioned capital increase, OCB’s charter capital is expected at over 13.757 trillion dong. OCB’s additional capital source will be used to supplement the bank’s lending and investment.

Previously, in mid-2020, OCB completed the sale of 15 percent of shares to Aozora, bringing the existing charter capital from 7.898 trillion dong to 8.767 trillion dong. This is the only successful capital mobilisation deal in 2020 in the banking and finance sector, especially during the period affected by the Covid-19 epidemic.

Aozora is the most efficient bank in Japan, established in 1957. With total assets of 50 billion US dollars, wide coverage in the international market, Aozora is capable to help OCB in many aspects and have similar development strategies with OCB.

With this strategic cooperation agreement, Aozora commits to make long-term investment in OCB by sending experts to participate in governance and operations, support business development, retail activities, risk management, improve technology and digital banking.

OCB has not released its business results in 2021 but in the first nine months of 2021, the bank recorded a pre-tax profit of 3.768 trillion dong, up by 50 percent over the same period of 2020, completing 68.5 percent of the plan set out at the 2021 Annual general Meeting.

According to the forecasts from securities companies, OCB is likely to exceed the profit target set for the whole year 2021 which is 5.5 trillion dong. The bank’s leader said that the business activities of OCB have increased sharply since Q42021 after the prolonged social distancing period.

Closing the session on January 12th 2022, OCB share price reached 27,000 dong per share. Although it slightly declined in the past week, but has risen by nearly 50 percent in the past year.

 

Category: Finance, Vietnam

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