Vietnam: State eyes $210m in Vinalines IPO; Vietcombank to sell 1.5m shares in OCB

Moving ahead with its privatisation exercise, Vietnam government seeks to raise $210 million from Vinalines IPO schedule for September 5 while Vietcombank is to sell 1.48 million shares in OCB Bank, expecting to earn $1.1 million from the sale.

State seeks to raise $210m in Vinalines IPO on Sept 5

Vietnam’s government is targeting to raise VND4.89 trillion ($210 million) from an initial public offering (IPO) of Vietnam National Shipping Lines (Vinalines) scheduled on September 5, according to an official release on Hanoi Stock Exchange (HNX).

Vinalines will auction 488.82 million shares, or a 34.8 per cent stake at the price of VND10,000 ($0.4) apiece at the HNX. Its charter capital is estimated at approximately VND14 trillion ($616.7 million).

Earlier, Vinalines planned to offer 280 million shares, or 20 per cent stake, for sale on HNX while 207 million shares, or 14.8%, was to be sold to strategic investors. The remaining shares were to be sold to employees of the company.

However, Vinalines did not find a suitable strategic investor even though SK Holdings, South Korea’s third-largest multilateral business conglomerate expressed interest in becoming strategic investor in the company.

The State still holds 65 per cent stake, equivalent to 912.9 million shares, in Vinalines after the IPO.

Vinalines’ 2017 revenue was estimated at VND16 trillion ($702.4 million), exceeding the annual target by 15 per cent. While its profit was VND515 billion ($22.6 million) and total assets stood at over VND18 trillion ($790 million). It is targeting a consolidated profit of $75.8 million on revenue of $757.7 million by 2020.

Vietcombank to sell 1.48m shares in OCB Bank

Vietnam’s largest lender by market value, Vietcombank (VCB) has announced a plan to offload the remaining 1.48 million shares in Ho Chi Minh City-based Orient Commercial Bank (OCB) scheduled on September 9 on Hanoi Stock Exchange, according to an official release.

At a price of VND18,876 ($0.82) per share, Vietcombank is expected to earn VND27.9 billion ($1.1 million) from the sale.

In April, Vietcombank earned approximately VND172 billion ($7.56 million) by offloading 6.67 million OCB shares.

A Hanoi Stock Exchange announcement said 667 investors, including eight organizations, participated in the auction that saw the highest bid at VND28,500 ($1.26) per share.

Following the divestment of its stake in OCB, Vietcombank also plans to sell its stake in Military Bank (MB) and Vietnam Export and Import Bank (Eximbank) this year.

The stake sale is a part of its effort to pare its ownership in other credit institutions under a directive issued by the State Bank of Vietnam. Under the central bank’s Circular 36, commercial banks are allowed to hold stakes in a maximum of two other credit institutions, with the stake in each not exceeding 5 per cent of total equity.

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