HCMC – The State Bank of Vietnam has allowed Saigon Hanoi Commercial Joint Stock Bank (HOSE, ticker: SHB) to increase its charter to VND40,650 billion through the issuance of dividend shares.
Lender SHB gets the nod to issue nearly 403 million shares to pay the 2023 dividend at a rate of 11%. This means that shareholders will receive 11 new shares for every 100 shares held.
The funds for the dividend stock issuance will be sourced from the undistributed after-tax profit, after making the necessary legal reserve allocations, as well as the retained earnings from the previous year, based on the audited financial statements as of December 31, 2023.
Once completed, SHB’s charter capital is expected to increase from VND36,630 billion to VND40,658 billion.
As per the resolution of the 2024 annual general meeting, SHB will distribute a 2023 dividend with a total ratio of 16%, comprising 5% in cash and 11% in stock. In August 2024, the bank issued the first cash dividend installment for 2023 at 5% to shareholders.
At the close of trading on January 3, SHB shares were priced at the reference level of VND10,250 per share.
On the southern bourse, the VN-Index of the Hochiminh Stock Exchange shed 15.12 points, or 1.19% against the previous session, closing at 1,254.59 points, under the widespread selling pressure, with 69 gainers and 353 decliners.
Nearly 560.5 million shares worth VND13.8 trillion were transacted, up by 30.93% in volume and 27.88% in value against yesterday’s session. Block deal transactions accounted for VND1.7 trillion.
The market’s main pressure came from the VN30 basket, with its index dropping by over 22 points. Of the 30 stocks, 24 declined, three rose, and three remained unchanged. BVH experienced the largest drop at 3.4%, followed by MWG with a 3.3% decrease and TCB down 3.1%.
DXG was the most traded stock on the market, with a trading volume of 20.7 million shares.
The HNX saw 55 stocks rise and 102 fall, with the HNX-Index dropping by 2.03 points, or 0.89% day-on-day, to 225.66 points.
The total trading volume was over 52.48 million shares, with a value of nearly VND817 billion. Block transactions accounted for 2.96 million shares, valued at VND26.67 billion.
