FPT Plans 171.4M Bonus Share Issue, Charter Capital to Rise to VND 18.86T

Overview

FPT Corporation (HOSE: FPT) announced a board resolution to issue over 171.4 million bonus shares to existing shareholders at a 10:1 ratio, funded from retained earnings. The issuance, expected no later than Q3 2026, will increase charter capital from VND 17.14 trillion to nearly VND 18.86 trillion. This capital increase comes amid a mixed financial performance in the first half of 2026.

Key Facts

• FPT’s board approved issuing 171,400,000 bonus shares at a 10:1 ratio (10 existing shares entitle the holder to 1 new share).
• Total issuance value at par is VND 1,714 billion, sourced from audited retained earnings as of December 31, 2025.
• Charter capital will rise from VND 17,143 billion to VND 18,858 billion upon completion.
• The issuance is expected to be completed no later than Q3 2026; new shares are not subject to transfer restrictions.
• Q2 2026 net revenue was VND 13,788.5 billion, down 17.1% year-on-year; net profit was VND 2,570.4 billion, down 6.2%.
• H1 2026 revenue reached VND 26,268.5 billion (-19.6% YoY), with net profit of VND 5,047.2 billion (-5.4% YoY).
• Total assets as of June 30, 2026, were VND 73,734.2 billion, down 16.3% from the start of the year.

What Happened

FPT Corporation’s board of directors passed a resolution to implement a bonus share issuance from the company’s equity. The plan involves issuing 171.4 million shares, with shareholders receiving one new share for every ten shares held. The source of funds is the undistributed after-tax profit recorded in the parent company’s audited financial statements for the fiscal year 2025.

The company stated that the issuance is expected to be completed no later than the third quarter of 2026. Following the issuance, FPT’s charter capital will increase from over VND 17.14 trillion to nearly VND 18.86 trillion. The new shares will not be subject to transfer restrictions.

In its consolidated financial report for Q2 2026, FPT recorded net revenue of VND 13,788.5 billion, a 17.1% decline year-on-year. Gross profit fell 28.9% to VND 4,278.6 billion. Net profit for the quarter was VND 2,570.4 billion, down 6.2% from Q2 2025. For the first six months of 2026, revenue and net profit declined 19.6% and 5.4%, respectively, compared to the same period in 2025.

Market Context

FPT shares closed at VND 71,700 on August 3, 2026, on the HOSE. The bonus share announcement comes as the company’s financial performance shows a slowdown, with revenue and profit declining in the first half of 2026. The technology sector in Vietnam has been volatile, and FPT’s stock price may react to the dilution effect of the bonus issue, though bonus shares often signal confidence in future earnings. The company’s total assets decreased 16.3% from the start of the year, reflecting a reduction in financial investments and liabilities.

Strategic Significance

The bonus share issuance is a strategic move to reward shareholders while strengthening the company’s equity base. By capitalizing retained earnings, FPT increases its charter capital without raising external funds, which could support future expansion and improve its capital structure. The move may also enhance liquidity and attract retail investors, as bonus shares often increase the number of outstanding shares. However, the decline in revenue and profit in H1 2026 suggests that FPT is facing headwinds, and the success of this issuance will depend on the company’s ability to reverse the negative trend.

What to Watch

• Completion timeline: Whether the issuance is finalized by Q3 2026 as planned.
• Q3 2026 earnings: Whether revenue and profit declines continue or stabilize.
• Share price reaction: How the market absorbs the dilution and whether the stock maintains its value.
• Regulatory approvals: Any updates from the State Securities Commission or other authorities.
• Use of proceeds: Whether the increased capital is deployed into high-growth areas like AI, cloud, or international expansion.