HÀ NỘI — The State Securities Commission (SSC) has approved National Citizen Commercial Joint Stock Bank’s (NCB) plan to issue more than 199.44 million shares to the public.

The bank plans to offer 184.6 million shares to existing shareholders and 14.88 million shares to its officials and employees.

After 90 days of distribution, NCB expects to mobilise VNĐ1.995 trillion of capital. The proceeds from the share offering will be used to invest in changing and building the bank’s brand image, investing in technology facilities, increasing capital for the NCB Debt Management and Asset Exploiting Co Ltd and supplementing its own capital for medium and long-term loans.

For existing shareholders, the registration and payment period is from March 28, 2019 to April 17, 2019, or following other notices of Việt Nam Securities Depository Centre (VSD) after the bank completes procedures to close the list of shareholders purchasing shares.

As for officials and employees, this period is from March 28, 2019 to May 3, 2019.

Deposited shareholders can transfer the rights to buy, register to buy and pay for shares at depository members where accounts are opened.

Non-deposited shareholders and staff can transfer the right to buy, register to buy and pay for shares at NCB’s headquarters at 28C-D Bà Triệu Street, Hàng Bài Ward, Hoàn Kiếm District, Hà Nội.

At the end of December 2018, The State Bank of Việt Nam (SBV) issued a document approving NCB to increase its charter capital from about VNĐ3 trillion to more than VNĐ5 trillion.

According to financial expert Nguyễn Trí Hiếu, the increase of capital is a positive sign for NCB. Hiếu said SBV’s approval of the capital increase can be considered a "clean bill of health” for the bank.

"Approving a capital increase plan means that the SBV has looked at the possibility of raising capital and how NCB will use this capital,” Hiếu said. “In principle, the increase of capital to create conditions for NCB to expand its business activities and the bank when raising capital must have adequate conditions for development from operation to human resources, risk management and the network grid.” — VNS