LPBank to Invest in FPT Shares, Aiming to Diversify Investment Channels

Loc Phat Vietnam Commercial Joint Stock Bank (LPBank) has announced plans to invest in FPT Corporation, a leading technology company in Vietnam. The bank’s Board of Directors has submitted a proposal to shareholders for approval of the capital contribution and share purchase plan.

LPBank’s investment in FPT shares is part of its strategy to diversify investment channels and optimize shareholders’ capital contributions. The bank’s core banking business will remain its primary focus, but investing in listed stocks like FPT will provide an additional revenue stream.

FPT Corporation is a large technology company with a sustainable business foundation and high growth rates. The company has a strong track record of innovation, focusing on emerging technologies like AI, Cloud, and Big Data. FPT’s shares have maintained stable growth over the years, making it an attractive investment opportunity for LPBank.

LPBank’s Board of Directors has assessed FPT’s potential and believes that investing in the company’s shares will bring attractive profit margins and contribute to diversifying the bank’s asset portfolio. FPT’s high liquidity and inclusion in the VN30 index, which represents leading stocks in Vietnam, make it an attractive investment opportunity for foreign investors in the medium and long term.

The proposed investment in FPT shares is expected to be around 5% of the company’s charter capital, which is currently over VND14,604 billion. This would translate to an investment of over VND730 billion. The transaction is expected to take place in 2024 and 2025, subject to approval from competent state agencies and the actual market situation.

LPBank’s General Meeting of Shareholders will also consider other proposals, including the election of additional members to the Board of Directors for the 2023-2028 term and the approval of a plan to increase charter capital in 2024. The bank’s charter capital is expected to increase by a maximum of VND4,296 billion, bringing the total charter capital to VND29,873 billion after issuing shares to pay dividends to existing shareholders.

FPT Corporation’s largest shareholders include Chairman Truong Gia Binh and the State Capital Investment Corporation (SCIC), with holding rates of 6.08% and 5% of FPT’s charter capital, respectively.

LPBank’s investment in FPT shares is subject to approval from shareholders and regulatory authorities. The bank’s decision to invest in FPT reflects its commitment to diversifying its investment channels and optimizing shareholders’ capital contributions.