Ho Chi Minh City Development Bank, the financial arm of Vietnam’s first female billionaire Nguyen Thi Phuong Thao, commonly known as HDBank, is planning a $300-million IPO this year with a target to list in the first quarter of 2018.
The bank is in the process of selling up to 20 per cent shares to overseas investors, according to media reports. This indicates a valuation of about $1.5 billion for HDBank.
The bank is currently one of the most preferred stocks in the over-the-counter (OTC) market, being traded at around VND30,000 apiece. OTC buyers have projected the HDBank stock price could go up to VND50,000 upon listing, translating into a potential $1.8 billion market value for the company.
Institutional investors from Japan are highly interested in the bank, said people familiar with the business. HDBank had in 2015 sold a 49 per cent stake in its arm HDFinance to Japan’s largest card issuer, Credit Saison.
Earlier in 2013, it was said to consider a 30 per cent disposal to three Japanese investors.
This time, the Vietnamese lender will offer each buyer less than 5 per cent equity through the IPO, Reuters reported citing its deputy CEO Le Thanh Trung.
HDBank’s founding shareholders include chairwoman Le Thi Bang Tam, who also chairs the $12-billion dairy firm Vinamilk; and Nguyen Thi Phuong Thao, who acts as vice chairwoman and leads Vietnam’s first private airline Vietjet.
Thao is enlisted in Forbes’ 100 most powerful women as well as richest people, with a $1.98-billion net worth.
Her budget carrier, Vietjet, conducted its $170-million IPO in 2016, which was the country’s first internationally marketed initial public offering.
A series of overseas share sales by Vietnamese companies have since followed suit, including the largest deal at $740 million by Vincom Retail.
HDBank was merged with DaiA Bank in 2013. It continued to consolidate the business by acquiring Société Générale Vietnam Finance Company to form HDFinance, which was then sold to the Japanese financial services firm.