After changing its commercial name, PGBank wants to increase its charter capital to 5,000 billion VND.

The Board of Directors of Prosperity and Development Joint Stock Commercial Bank (PGBank - UPCoM: PGB) has just approved the implementation of a plan to increase charter capital by issuing shares in 2023.

Specifically, PGBank plans to issue an additional 120 million shares to increase equity capital from owners' equity at a ratio of 10:4, meaning that shareholders owning 1 share will receive 1 right to receive and for every 10 rights to receive, they will receive 4 more shares.

The source used to increase capital is from accumulated undistributed profit after tax and charter capital supplementary reserve fund based on audited financial statements for 2022, after setting aside funds to ensure compliance with regulations of the State Bank and the law.

At the same time, PGBank also increased its charter capital by issuing 80 million shares to existing shareholders at a ratio of 15:4, equivalent to a shareholder owning 1 share receiving 1 right and every 15 rights receiving 4 new shares.

The capital increase will be implemented immediately after being approved by the competent State management agency. The time to complete related procedures is no later than the third quarter of 2024.

If the above two capital increase plans are successfully implemented, PGBank's charter capital will increase to VND5,000 billion. The last time PGBank increased its charter capital was in 2012, when it increased its charter capital from VND2,000 billion at the beginning of the year to VND3,000 billion. Thus, after 11 years, PGBank has increased its charter capital again.

PGBank's decision to increase its charter capital took place in the context that on November 20, the bank officially changed its commercial name to Prosperity and Development Joint Stock Commercial Bank.

The bank's foreign name was changed from Petrolimex Group Commercial Joint Stock Bank to Prosperity and Growth Commercial Joint Stock Bank. The abbreviated name PG Bank was changed to PGBank.

Previously, in October, PGBank’s General Meeting of Shareholders also approved a plan to increase charter capital two years earlier than the State Bank’s request. This plan aims to supplement business capital, modernize technology, and enhance PG Bank’s competitiveness in the new period.

In the market, in the morning trading session on November 29, PGB shares were fluctuating around 24,500 VND/share with a trading volume of only 116 units .

Thu Huong

Source