HCMC – Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) plans to issue 123.8 million BID shares via private placement, its board of directors announced.
The shares will be sold at VND38,800 each, more than twice the bank’s book value of VND19,300 per share as of the third quarter of 2024. The share issue represents 1.8% of BIDV’s outstanding shares.
The Dragon Capital investment funds – including Vietnam Enterprise Investment Limited (VEIL), Hanoi Investment Holding Limited, DC Developing Markets Strategies Public Limited Company, and Samsung Vietnam Secuirities Master Investment Trust (SSMIT) – will purchase 85.2 million shares, while the State Capital Investment Corporation (SCIC) will acquire 38.6 million shares.
The issuance is scheduled for the first quarter of 2025, with a one-year lock-up period on the shares.
The private placement is part of BIDV’s plan to issue nearly 165 million shares, or 2.89% of its charter capital as of Dec. 31, 2023. The first phase, accounting for 2.9%, is expected in the first quarter this year. Subsequent share sales will depend on market conditions.
Separately, the State Bank of Vietnam has approved a capital increase of up to VND11.97 trillion for the bank via a stock dividend. Nearly two billion shares, equivalent to a 21% dividend ratio, will be issued between Q4 2024 and Q1 2025.
Closing the trading session today, January 8, BID edged down 0.12% to VND40,350 per share, with a trading volume of over 3.1 million shares.
With 236 winners and 153 losers, the VN-Index rose 4.07 points, or 0.33%, to 1,251.02 points on Wednesday, despite a decline in trading volume and value.
Market trading volume totaled 445.75 million shares worth over VND10.2 trillion, down 20.4% in volume and 22.62% in value compared to the previous session. Block deals accounted for 78.23 million shares worth VND1.7 trillion.
The VN30-Index, which tracks the 30 largest-cap stocks, gained nearly 1.5 points to 1,316.63 points, with 17 stocks rising and six others declining.
TCB added 1.3%, MWG and SSB climbed 1.8% each, and POW increased 1.7%. HDB fell 3.9% to its daily low of VND23,300. However, it was the most actively traded stock on the market with a matching volume of nearly 18.5 million shares.
Transportation stocks recorded the highest increase among all sectors, with an average gain of 1.9%. HVN rose over 2%, HAH increased 2.3%, and PHP improved 3.37%. VTO, VOS, and several others posted gains exceeding 1%.
Banking, steel, and securities stocks also advanced, though gains were modest. In the steel sector, HPG edged up 0.8%, while HSG and NKG increased 1.4% and 1.8%, respectively.
On the Hanoi Stock Exchange, the HNX-Index added 0.89 point, or 0.4%, to end at 221.87 points, with 90 advancers and 65 decliners. Trading volume reached 37 million shares, with a total value of VND589.2 billion.
