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Sunday, July 14, 2024

LPBank eyes stock dividend instead of share sale

The Saigon Times

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HCMC – Lien Viet Post Joint Stock Commercial Bank (LPBank) wants to alter its capital increase plan for 2024, changing from selling shares to existing shareholders to paying a stock dividend, according to a statement from the bank’s board of directors.

The bank, which previously planned to increase its capital by issuing new shares, will now seek shareholder approval to pay a stock dividend of 16.8%, using the 2023 retained earnings. This proposed change is intended to enhance value for shareholders and increase the bank’s capital base.

If the plan receives the green light at the upcoming shareholder meeting, LPBank’s capital is projected to rise from around VND25.6 trillion to VND29.9 trillion.

The move comes after the 2024 annual general meeting earlier endorsed a plan to potentially increase capital by up to VND8 trillion by offering 800 million new shares to shareholders at VND10,000 per share.

For 2024, the bank has set a goal of making VND10.5 trillion in pre-tax profit, up by a significant 50% against 2023, with total assets expected to grow 11.6% to VND427.26 trillion.

LPBank’s stock has surged by 79% since the beginning of the year. In today’s trading session, its LPB shares were among the few in the banking sector to gain, closing up by 1.23% to VND28,700 per share, with a trading volume of 4.5 million shares.

The VN-Index gained 4.65 points, or 0.37%, to close at 1,261.24 points, with 190 winners and 216 losers. Around 878.4 million shares worth VND20.8 trillion changed hands on the southern exchange, with block deals accounting for 289.3 million shares valued at VND5.42 trillion.

The VN30 basket, which groups the 30 largest-cap stocks on the Hochiminh Stock Exchange, ended slightly up by 0.19% at 1,291.3 points, with an equal number of 12 gainers and losers.

GVR soared to its ceiling price of VND35,950 per share, with 10.2 million shares traded. It contributed 2.3 points to the main index. Other stocks like BCM and PLX also reversed early losses to close higher, adding buoyancy to the broader market.

Conversely, the banking sector witnessed some downward movement, with stocks like VCB and MBB inching down by a mild 0.35% and 0.44%. This pullback slightly dampened the overall market gain.

VPB took the lead by liquidity on the southern market, with a trading volume of 27.2 million shares.

The HNX-Index dipped by 0.51 point, or 0.21%, to 239.68 points, with 84 advancers and 76 decliners.  Stock trade on the northern exchange totaled 52.2 million shares worth over VND1.1 trillion.

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