Vietnam Maritime Commercial JSC (MSB) has decided to revoke its application for initial public offering (IPO) due to the adverse impact of the COVID-19 pandemic.
The MSB Board of Management (BoM) announced that the bank would withdraw its IPO application as well as re-schedule its upcoming IPO on the HCM City Stock Exchange (HSX) until conditions are better.
The market turbulence brought on by the pandemic has led to record losses in the stock market, pushing investors away from risky assets.
Social distancing and restrictions on immigration have put a damper on investment appetite in Vietnam. Foreign experts had to delay or cancel business plans, exacerbating losses.
This brought about the serial calling off of investment deals and disrupted capital disbursement and the inflow of foreign capital to Vietnam. All this volatility and market gyrations might hurt the performance of local blue-chips.
“Vietnamese banks like us also fell victim to the uncertainties. It would not be a wise move if we filed for an IPO at the moment,” MSB’s representative explained at the latest shareholders’ meeting.
The bank’s BoM also opined that price per share could easily fall below the expected level and no one wants to make a weak first impression regardless of an unprecedented crisis.
Previously, VIR reported that Vietnamese banks are dancing on a razor’s edge because of their IPO cancellation.
Cautious investors are either staying on the side-lines or opting for safe haven assets such as gold or bonds. A number of firms, such as state-owned lender Agribank, Nam A Bank, Viet Capital Bank or Loc Troi Group, have been caught between a rock and hard place, wondering if they should go public at this moment or not.
https://www.vir.com.vn/vietnamese-bank-msb-postpones-ipo-due-to-covid-19-76420.html
