Vietnam: HDBank to sell 20% stake in December IPO at $1.5b valuation

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.

Also read:

VN’s HDBank sells 49% in HDFinance to Japan’s Credit Saison

Vietjet’s $170m IPO is Vietnam’s biggest, first globally marketed offer

Vietnam: Vincom Retail raises $740m from GIC, Templeton, HSBC, others in IPO

Vietnam: Realty firm Novaland sells stake worth $120m to 18 investors

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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.