Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has just issued over 111 million shares for foreign investors and collected the proceeds of 6.2 trillion dong. After the deal, the State reduced its ownership in this bank to below 75 percent.
Vietcombank (code: VCB) has just sent a report to the State Securities Commission regarding the results of its recent private placement.
Accordingly, Vietcombank offered 359,776,857 shares with expected proceeds of 20.22 trillion dong. However, the number of successful distribution was 111,108,873 shares, equivalent to 30.88 percent of the total registered offers.
Two partners who bought shares of Vietcombank are GIC Private LimitedSingapore’s national investment fund (GIC) and existing shareholder Mizuho Bank Ltd (Mizuho). In which, Mizuho bought 16,666,431 new shares to maintain a 15 percent stake in Vietcombank. GIC bought 94,442,442 new shares and owned 2.55 percent of Vietcombank’s capital.
With the selling price of 55,510 dong/share, the proceeds from the deal reached about 6.2 trillion dong, equivalent to about $256 million. The investment by GIC and Mizuho has increased Vietcombank’s chartered capital to 37.1 trillion dong, equivalent to $1.6 billion.
According to Vietcombank’s report, the total estimated cost for this sale is 61 billion dong, which is temporary estimated expenses since some expenses foreign currency were not yet paid. The net proceeds from the deal were over 6.1 trillion dong.
The shares bought by Mizuho and GIC are restricted for transfer within one year.
After the sale of capital to two foreign partners, the State reduced its ownership at Vietcombank from 77.1 percent to 74.8 percent. Mizuho is now the largest non-State shareholder in the bank.
On 10th January, Vietcombank also held a ceremony to review the operation in 2018 and to carry out the task of 2019. Accordingly, by the end of 2018, the bank will have total assets of over one quadrillion dong, profit of over 18 trillion dongincreasing. 63 percent compared to 2017 and the highest level in this bank’s history, while maintaining the top position in the system of Vietnamese credit institutions in both capital and profit.
