Bamboo Capital plans to invest in fintech this year, a move aimed to bolster the multi-sector conglomerate’s long-term growth.
The Vietnamese group (BCG) will invest in the fintech business of its subsidiary Bamboo ID to develop digital banking applications, as well as make long-term investments in banking and merger and acquisition (M&A) deals in the financial sector.
The corporation expected to reap VND7,250 billion ($316 million) and $96 million in net revenue and profit after tax respectively in 2022, up 280% and 220% from the 2021 results.
At BCG's recent annual general meeting, shareholders approved business plans for 2022, including the above-mentioned targets and a dividend payout ratio of 10% for 2021, of which half in cash and half in shares.
Under its plans, the Ho Chi Minh City-based group will for the first time issue shares to the public, 250 million via auction. The initial offering price is equal to at least 70% of the average reference price of 60 consecutive trading days on the Vietnamese stock market to the date BCG publicizes the offering resolution.
All its share issuance plans for this year are expected to create proceeds of $256 million, doubling the group’s charter capital to VND10,500 billion ($457 million) from the current $218 million.
After completing this capital increase, BCG would allocate $216.6 million to its subsidiary BCG Financial to increase capital for AAA Insurance JSC, an affiliate of the financial unit. This is aimed at assisting AAA in accelerating in the non-life insurance market and developing more life insurance products as the Vietnamese insurer eyes listing in the next three years. The new capital will also go to fintech, digital banking, and M&A.
BCG has more than 30 subsidiaries and affiliates operating in banking and finance, agriculture, manufacturing, construction, commerce, infrastructure, real estate, and renewable energy.