Techcombank launches Vietnam’s biggest IPO, targets to raise $922m

Vietnam Technological and Commercial Joint Stock Bank (Techcombank) launched on Friday the nation’s biggest IPO that aims to raise as much as $922 million and has attracted global funds as cornerstone investors, a term sheet of the deal showed.

Equity issues are booming in the Southeast Asian nation as it speeds up a privatisation drive. Strong interest from foreign investors and local funds has pushed up the benchmark index by 19 percent so far this year, making it one of Asia’s best performers after rising nearly 50 percent last year.

Techcombank, Vietnam’s largest private sector bank, is offering shares in a price range of 120,000-128,000 Vietnamese dong per share ($5.27-$5.62) that will raise between $864 million to $922 million, according to the term sheet seen by Reuters.

Singapore wealth fund GIC, Fidelity Management and Research and Dragon Capital are among funds coming in as cornerstone investors, the term sheet showed.

Techcombank’s IPO will be bigger than Warburg Pincus-backed Vincom Retail’s IPO last year, which raised about $700 million.

Other big IPOs are on the anvil. In February, Reuters cited sources as saying Vingroup JSC, Vietnam’s biggest property developer, had picked foreign banks for a planned $1 billion listing of its residential property business.

Techcombank’s IPO, which will be listed in Ho Chi Minh Stock Exchange, is expected to value the bank at about $6.1 billion to $6.5 billion, ranking it among the 10 biggest listed local companies.

Techcombank declined to comment on the equity offering.

The lender got a boost last month when Warburg Pincus agreed to invest more than $370 million in the bank, in the largest ever private equity investment in the Southeast Asian nation.

A source with knowledge of the transaction said that demand from cornerstone investors was so strong that about 76 percent of the IPO was being allocated to such investors, much higher than in other IPOs.

He said investors were keen to put money in one of the fastest growing banks in Southeast Asia while the country’s strong economic growth had also attracted a range of international investors.

“Techcombank is focused on retail and fee income – this is a story that long-only funds are keen to play,” said the source on condition of anonymity.

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.

Books for the IPO will close on April 23 and Techcombank is expected to list on June 4.

Morgan Stanley, Viet Capital Securities and Deutsche Bank are the joint global coordinators for the issue.

Reuters

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.

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.