ABBank seeks to hike capital through rights issuances of shares
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ABBank plans to increase its charter capital by 65 percent to VND9.4 trillion ($407 million) through rights issuances of shares to existing shareholders.
There will be two issuances, one each in the second and third quarters of this year, the Hanoi-based lender said in a plan it outlined to shareholders.
The bank, established in 1993, plans to use the money raised for expansion and ensuring capital adequacy.
It targets increasing pre-tax profits by 44 percent this year to VND1.97 trillion. It achieved 10 percent profit growth last year.
Questions & Answers
Q.What is ABBank's primary method for increasing its charter capital?
What is ABBank's primary method for increasing its charter capital?
ABBank intends to increase its charter capital through rights issuances of shares to its existing shareholders. This will occur in two stages, planned for the second and third quarters of this year.
Q.What is the targeted increase in pre-tax profits for ABBank this year?
What is the targeted increase in pre-tax profits for ABBank this year?
ABBank aims to increase its pre-tax profits by 44 percent this year, reaching a target of VND1.97 trillion. This follows a 10 percent profit growth recorded last year.
Q.What are ABBank's stated reasons for seeking to raise additional capital?
What are ABBank's stated reasons for seeking to raise additional capital?
The bank plans to utilise the money raised from the rights issuances for general expansion purposes. It also intends to use the funds to ensure it meets necessary capital adequacy requirements.
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