Vietnam’s OCB mulls 11% stake sale to Japan’s Aozora Bank, plans to list on HoSE

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.

Singapore Reporter/s

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.