Foreign investors buying individual issued shares of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) as well as Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) have started to earn significant profits.
Closing the morning of November 4, VCB shares once again peaked when it rose by 3.3 percent to 91,700 dong per share. Since the beginning of the year, this stock has increased by 71 percent in market price.
Earlier this year, Vietcombank completed the private placement of more than 111 million shares to GICSingapore’s national investment fund and existing shareholder Mizuho Bank with an average price of about 55,800 dong per share and since then, VCB stocks started gaining momentum “galloping”.
Hence, compared to the current market price, these foreign shareholders have temporarily gained a return of over 60 percent after only about 10 months of investing in Vietcombank. That means, pouring 6.2 trillion dong into Vietcombank, GIC and Mizuho Bank realise the income of four trillion dong.
Similarly, on October 31, BIDV announced that it had completed the private placement of more than 603 million shares to its Korean partner, KEB Hana Bank. Issuing price is 33,640 dong per share.
However, if adjusted after the total cash dividend of 14 percent for 2017 and 2018, the actual issuance price is about 35,000 dong per share (agreed by KEB Hana Bank not to receive two-year dividends). Closing the morning of November 4, BIDV’s shares increased by 2.7 percent to 42,100 dong per share.
If compared to this market price, KEB Hana Bank is temporarily taking interest of about 20 percent. In other words, the amount of 20.2 trillion dong that KEB Hana Bank spent is now worth nearly 25.4 trillion dong.
Another bank also in the process of selling capital is Military Commercial Joint Stock Bank (MB).
According to an analysis report of Agriseco Securities, MB is expected to earn about $250 million from the upcoming issue, equivalent to a “3x” price per share. At the annual general meeting of shareholders in 2019 held in April 2019, MB general director Luu Trung Thai also said that the bank expected to sell shares to foreign countries for more than 30,000 dong per share, even up to 40,000 dong per share.
Many investors are expecting this capital sale will become a driving force for price increase for MBB stock, which is famous for its “inert” power. Since the beginning of the year, MBB shares have increased by 30 percent of market price. However, if not counting the unexpected fall in early January, most investors would have earned less than 20 percent including dividends.
