Vietnam Technological and Commercial Joint Stock Bank (Techcombank) plans to raise charter capital from VND11 trillion ($481 million) to VND35 trillion ($1.5 billion) after its listing debut on Ho Chi Minh City Stock Exchange (HoSE) on June 4.
At the pre-listing conference on Wednesday, Techcombank CEO Nguyen Le Quoc Anh said, over 1 billion shares will 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), ranked the second position in the market after Vietcombank at VND192 trillion ($8.4 billion).
At this valuation, Techcombank’s capitalization is even greater than that of The Bank for Investment and Development of Vietnam (BIDV) and Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), whose charter capital is three times higher in comparison.
As planned, 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, adding that it has not yet decided to list shares on foreign stock markets.
The Hanoi-based bank, which is now owned 22.5 per cent by foreign investors, also plans to invest $300 million over the next five years to enable development of online transactions.
Techcombank’s IPO attracted many foreign investors, including Singapore’s GIC, Dragon Capital and Fidelity Management, all of whom are keen to become key investors, as they register to buy 76 per cent of the bank’s shares.
Global private equity major Warburg Pincus last month agreed to invest over $370 million in Techcombank, marking the largest ever PE investment in Vietnam to date.
“Our decision to allocate a large portion of our offering to the cornerstone investors is a 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,” said the bank’s CEO.
The 25-year-old bank 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 across the country.
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