Vietnam Orient Commercial Joint Stock Bank (OCB) is mulling to sell 11 per cent stake to Japanese commercial lender Aozora Bank and plans to list on Ho Chi Minh City Stock Exchange (HoSE) this year.
A bank spokesman told DealStreetAsia in an interaction that it is seeking shareholders’ opinion for the private placement issue of nearly 86.9 million shares (11% of charter capital) to Japan’s Aozora Bank.
“Regarding the listing plan, OCB is still in the process of implementing procedures to list on HoSE, expected to be done this year,” she said.
The 86.9 million shares is a part of 118 million shares that the Ho Chi Minh-headquartered lender is offering for sale. After issuing to the Japanese bank, OCB will continue to offer for sale the remaining 31.6 million shares.
Based on the current trading price of OCB’s shares at VND14,100-15,900 each (61-69 cents), Aozora needs to spend at least VND1.22 trillion ($52.8 million) on the deal, at VND14,100 apiece.
In 2018, OCB planned to list 750 million shares on HoSE. OCB’s chairman Trinh Van Tuan at that time told media that he expected the bank’s market capitalization to rise to $1 billion.
However, the plan didn’t see the light of the day then and had been postponed. Tuan said that OCB decided to delay the listing on HoSE to have the most effective plan and listing time for the bank and shareholders, and expectations before the end of fiscal 2019.
Established in 1996, OCB has about 200 trading units in all major cities and economic zones in the country with more than 6,000 staff and VND 10 trillion in equity (equivalent to $450 million).
It recently has started laying its focus on lending to small and medium enterprises. In March 2019, International Finance Corporation (IFC) approved an earlier financing proposal to provide a $100-million loan to OCB to help it boost lending to SMEs, especially women-led businesses.
Established in 1957, Aozora has a total asset value of $48 billion and is listed on the Tokyo Stock Exchange at a market cap of $3.16 billion.
Last year, in Vietnam’s banking and financial sector, South Korea-headquartered Hana Bank purchased 15 per cent stake in Bank for Investment and Development of Vietnam (BIDV) for $875 million.
Earlier, Vietcombank sold a $270-million stake (equivalent 3 per cent equity) to Singapore’s GIC and Japan’s Mizuho Bank.