Vietnamese lender Techcombank made a lacklustre listing debut with shares trading on Ho Chi Minh City Stock Exchange at VND102,400 ($4.49), down 20 per cent from their reference price of VND128,000 ($5.62) apiece, hitting the lowest trading limit on maiden day.
Its market capitalization dropped by nearly VND30 trillion ($1.3 billion) compared to the expected $6.5 billion valuation on its listing debut on Monday.
At the time of publishing the article, Techcombank was trading at VND102,400 ($4.49) apiece.
During the trading session, selling volume continued to increase while there were no buyers. When asked about the decline of share price, the bank CEO Nguyen Le Quoc Anh said, “fluctuation is a matter of market” declining to comment further.
He said earlier at a roadshow in May that over 1 billion shares would be traded on HoSE at starting price of VND128,000 ($5.62) apiece. Shares are allowed to move 20 per cent higher or lower than the reference price on the first day of listing.
At the price, the Hanoi-based bank was valued at VND149 trillion ($6.5 billion), estimated at second position only behind Vietcombank at VND192 trillion ($8.4 billion).
Meanwhile, Vinhomes JSC, the residential property developer of Vietnam’s biggest conglomerate Vingroup, saw its share price rise 20 per cent from VND92,100 to VND110,500 ($4.85) per share in its recent listing debut on (HoSE).
As planned, the Hanoi-based bank, which is now owned 22.5 per cent by foreign investors, also proposes to invest $300 million over the next five years to enable development of online transactions.
Techcombank plans to issue more than 2.3 million common shares with par value of VND10,000 apiece ($0.4) to increase charter capital. “We plan to pay dividends to shareholders after six to eight weeks after listing on HoSE,” said the bank’s CEO.
Also Read:
GIC-backed Vietnam’s Techcombank plans aggressive retail push after major IPO
Vietnamese Techcombank to make listing debut on June 4 at $6.5b valuation
