Bamboo Capital Group (BCG) expects a net revenue of VND7,250 billion ($316 million) and profit after tax of $96 million in 2022, up 280% and 220% from the 2021 results.
At its annual general meeting on Friday, the multi-sector Vietnamese corporation announced its dividend payout ratio of 10%, of which 5% in cash and 5% in shares.
BCG planned to double its charter capital to VND10,500 billion ($457 million) via issuances of shares worth $256 million.
The corporation will issue an additional 266 million shares at the price of VND10,000 ($0.44) to existing shareholders, in the ratio of 2:1 (each shareholder owning two shares can buy one new share).
For the first time, BCG intended to issue shares by auctioning off 250 million shares to the public. The initial offering price is at least 70% of BCG shares’ average reference price over 60 consecutive trading days on the stock market prior to the date the firm announces the offering resolution.
It also planned to issue five million employee stock ownership plan (ESOP) shares and 25.3 million shares for dividend payments.
By expanding its chartered capital in 2022, BCG could improve its financial capacity, boost business growth, and create greater value for shareholders. This would also assist the group in achieving its profit after tax target of VND10,000 billion (nearly $436 million) by 2026, a BCG leader told the meeting.
BCG decided to contribute $218 million from the additional capital to subsidiary BCG Financial, aiming to raise capital for AAA Insurance JSC. This intends to help the insurer accelerate in the non-life insurance market, develop more life insurance products, and be able to list on the local stock exchange in the next three years.
Through BCG Financial, BCG will also invest in Bamboo ID JSC’s fintech segment to develop a digital banking app and make long-term investments in banking and M&A activities.
The group planned to conduct an initial public offering (IPO) for real estate subsidiary BCG Land in the third quarter of 2022, and have it listed on the Vietnamese stock market. BCG Land’s chartered capital is expected to jump by $87 million to $287.5 million following its IPO.
Shareholders on Friday voted for Nguyen Tung Lam to replace Khuat Tuan Anh as a board member in the term 2022-2026.