EAB Planned to Raise Capital and Reduce Par Value of Its Stock

EAB will issue at least VND 300 billion worth of shares at book value to raise its chartered capital to VND 880 billion by the end of 2006.

As plan, VND 30 billion worth of stocks will be offered to employees at VND 2.5 million per share.

VND 270 billion worth will be offered to existing shareholders, each shareholder might buy up to 54% of the stock he currently owns at the book price (VND 2 million per share).

EAB also intends to issue VND 80 million in stocks to strategic shareholders at a minimum price of  three times higher than the book value.

In addition, EAB reduced the face value of each share from VND 2 million to VND 1 million in order to increase the number of outstanding shares.

According to Mr. Tran Phuong Binh - EAB’s director, the bank in 2006 still choose strategic shareholders from domestic investors who can help developing the bank.

EAB reserves a significant number of stocks for a foreign partner from 2007.  

Reported by Cat Tri

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