Customers make transactions at the VPBank Head Office (Photo: VNA)Hanoi (VNA) - The Vietnam Prosperity Joint Stock Commercial Bank(VPBank) started listing 1.3 billion shares on the Ho Chi Minh Stock Exchangeon August 17, while having received 1.2 billion USD worth of purchasing offersfrom foreign investors.
Both VPBank and Viet Capital Securities Company (VCSC) hadapproached more than 80 foreign investors, and most of the investors madepre-listing buying offers for the bank’s shares at the price of 39,000 VND (1.73USD), according to To Hai, director of VCSC.
Hai said at VPBank’s pre-listing seminar on August 15 that thevalue of foreign investors’ pre-listing purchasing offers might be a historicalmilestone for Vietnam’s banking sector, even in the golden age of commercialbanks in 2007, and it would be hard to repeat a similar-valued deal in thefuture.
“When we were building the book value for VPBank’s shares, werecognised that foreign investors were willing to pay even higher at 44,000 VNDper share,” he said, referring to the fact that VPBank was quite attractive toforeign investors at the moment.
The bank was valued at least 2 billion USD when valuation of thebank’s shares started in March 2016, Hai added. It was also the time when thebenchmark VN Index on the HCM Stock Exchange was around 600 points. The bank isnow valued at 2.3 billion USD on the starting trade price of 39,000 VND pershare, making it one of the top 10 listed firms by market capitalisation.
The share price of 39,000 VND was decided by the market demand,not by VPBank and VCSC, he said, adding that VPBank’s shares had more room togrow.
“The gap between large-cap and small-cap banks is getting wider.In the next four to five years, there will be banks whose market capitalisationreaches more than 10 billion USD, and VPBank could be among them.”
According to Nguyen Duc Vinh, general director of VPBank, therewere two reasons that made the bank’s board managers decide to put its shareson the stock exchange.
Firstly, VPBank is in the final year of its five-year developmentstage from 2012 to 2017, and it has reached its pre-set targets. The bank’sprofits have kept risen year on year with 2016 profit five-folding 2012 number.
Its achievements have brought benefits to both shareholders andcustomers, raising its market status to one of the best-performing banks in thebanking system. The management board has met to review its old businessstrategy and come up with a new one for the next three to five years.
Secondly, the plan will help the bank develop its business onhigh-quality and specialised products and services, generating additionalvalues for its employees, investors and the society.
By listing its shares on the stock market, the bank hopes to drawmore investment from those that have financial strength, professional knowledgeand skills, and make great contribution to its development.
In the past seven months of 2017, VPBank posted 2.34 trillion VNDin pre-tax profit, a yearly increase of 107 percent, and a total asset ofnearly 254 trillion VND.-VNA
The bank was valued at least 2 billion USD when valuation of thebank’s shares started in March 2016, Hai added. It was also the time when thebenchmark VN Index on the HCM Stock Exchange was around 600 points. The bank isnow valued at 2.3 billion USD on the starting trade price of 39,000 VND pershare, making it one of the top 10 listed firms by market capitalisation.
The share price of 39,000 VND was decided by the market demand,not by VPBank and VCSC, he said, adding that VPBank’s shares had more room togrow.
“The gap between large-cap and small-cap banks is getting wider.In the next four to five years, there will be banks whose market capitalisationreaches more than 10 billion USD, and VPBank could be among them.”
According to Nguyen Duc Vinh, general director of VPBank, therewere two reasons that made the bank’s board managers decide to put its shareson the stock exchange.
Firstly, VPBank is in the final year of its five-year developmentstage from 2012 to 2017, and it has reached its pre-set targets. The bank’sprofits have kept risen year on year with 2016 profit five-folding 2012 number.
Its achievements have brought benefits to both shareholders andcustomers, raising its market status to one of the best-performing banks in thebanking system. The management board has met to review its old businessstrategy and come up with a new one for the next three to five years.
Secondly, the plan will help the bank develop its business onhigh-quality and specialised products and services, generating additionalvalues for its employees, investors and the society.
By listing its shares on the stock market, the bank hopes to drawmore investment from those that have financial strength, professional knowledgeand skills, and make great contribution to its development.
In the past seven months of 2017, VPBank posted 2.34 trillion VNDin pre-tax profit, a yearly increase of 107 percent, and a total asset ofnearly 254 trillion VND.-VNA
VNA
