Vietnam’s largest listed firm to double charter capital

Vingroup, the biggest company by market capitalization on Vietnam's bourses, said it will double its charter capital to more than VND77 trillion ($2.92 billion) after issuing nearly 3.9 billion bonus shares to existing shareholders at a 1:1 ratio.

The group (HoSE: VIC) said it had completed a written consultation of shareholders on three items, including a bonus share issuance from owners’ equity, amendments to its business lines, and revisions to its charter. All proposals were approved.

Under the plan, each shareholder holding one VIC share will receive one additional share, with issuance expected in Q4, subject to the board of directors’ decision.

Shareholders also approved the addition of new business activities, including steel production and processing, metal casting and coating, mechanical engineering, and care services for the elderly and disabled.

Vingroup’s board has since passed resolutions to submit issuance documents to the State Securities Commission (SSC) and implement the approved bonus share plan.

Following the issuance, Vingroup will remain the largest company by market capitalization on Vietnam’s stock market, currently valued at nearly VND800 trillion ($30.33 billion).

On the Ho Chi Minh Stock Exchange (HoSE), VIC shares closed Wednesday at VND220,500 ($8.36) apiece, up 0.23%. The stock has risen fivefold since the start of the year.

As of end-September, Vingroup had achieved 76% of the year's profit target, posting consolidated after-tax profit of VND7.57 trillion ($286.8 million), up 86% year-on-year.

Total assets reached VND1,088 trillion ($41.24 billion), a 30% increase from the start of the year.