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BID shares of BIDV have been the focus of the stock market in recent sessions as they have continuously risen and set new highs. In the February 23 session, despite the sharp decline in the overall market, BID still increased by more than 4.5% to the highest level in history (price adjusted for dividends) at VND 52,000 per share, with a market capitalization of over VND 296,000 billion – the second highest in the market, only after Vietcombank.
Since the beginning of the year, this stock has increased by nearly 20% and is one of the strongest gainers in the VN30 group.
BID shares have risen sharply in the context of BIDV recently holding an extraordinary shareholders’ meeting in 2024 to approve the adjustment of the implementation time for the issuance of additional shares under the 2023 charter capital increase plan. Accordingly, the AGM decided to postpone the implementation time of the capital increase plan until 2024.
Previously, the regular annual general meeting of BIDV in 2023 approved a plan to issue over 1 billion shares, including nearly 642 million shares to pay dividends for 2021 and the remaining portion for issuance of additional shares through public offering or private placement (455 million shares).
At the end of 2023, BIDV issued nearly 642 million shares to pay dividends for 2021.
As for the remaining 455 million shares, BIDV has not announced detailed plans for the offering; however, the bank has long planned to privately issue shares to foreign investors and has not yet successfully implemented this plan.
At the regular annual general meeting in 2023, Chairman Phan Duc Tu said: “The bank’s leadership has made great efforts to carry out this plan, contacting a total of 38 investors over the past 3 years. However, due to unfavorable economic conditions in various countries, investors’ risk appetite for emerging markets, and tightening monetary policies in those countries, the expansion of investment in Vietnam has declined.”
“In 2023, we will continue to carry out this task. Currently, we have some potential investors but cannot disclose them. We will strive to accomplish this task in 2023,” Mr. Tu emphasized at the regular annual general meeting in 2023.
In a recent analysis report, Vietcap Securities (VCSC) stated that BIDV’s divestment deal will be one of the bright spots in the banking industry in 2024. VCSC believes that the reason BIDV has not been able to divest is due to the unfavorable economic conditions in 2023. With the expectation of economic recovery in 2024, coupled with a low interest rate environment, the analyst group expects the capital mobilization activities through share issuance to be successful.
