Final price of $5.62 per share brings in some $922 million.
Techcombank, one of the largest private sector joint stock commercial banks (JSCBs) in Vietnam, has announced the successful placing of 164,076,954 ordinary shares to institutional investors.
Based on a final price of VND128,000 ($5.62) per share, the placement raised a total of approximately VND21 trillion ($922 million), equating to a market capitalisation of $6.5 billion. The book was significantly oversubscribed at the time of pricing.
Trading of Techcombank’s shares on the Ho Chi Minh Stock Exchange (HSX) is expected to commence on Monday June 4, under the stock code TCB VN.
“We are thrilled with the positive response from the international investment community,” said CEO Quoc Anh Nguyen Le. “Our decision to allocate a large portion of our offering to the cornerstone tranche is testament to the tremendous demand from a diverse and high-quality set of investors. Just as important is that a number of these funds are investing in Vietnam for the first time.”
He added that Techcombank believes investors are attracted by the strength of its business model and the broad background and experience of its management team. But, most importantly, investors are very bullish on the growth of Vietnam’s middle class as its young population enters the workforce. “The country’s low financial inclusion rate also makes banking a very attractive proposition,” Le said.
This year is shaping up to be one of the more exciting times for the country’s equity market as it parallels the trajectory of Vietnam’s economic development, he went on. “Our management team is grateful for the incredible support from our existing shareholders, excited to welcome new investors, and appreciative of our advisors, who together made this initial public offering a resounding success,” he said. “We are committed to providing the highest value to our customers, developing our team members, and delivering strong returns for shareholders.”
Morgan Stanley, Viet Capital Securities, and Deutsche Bank AG arranged the offering.
Established in 1993, Techcombank is one of the largest JSCBs in Vietnam and one of the leading banks in Asia. It provides a broad range of banking products and services to more than 5.4 million customers in Vietnam, with an extensive network of 315 branches around the country.
