Vietnam’s TPBank expects market cap to soar to $1b after listing

TPBank. Photo: Company's social media page.

Tien Phong Commercial Joint Stock Bank expects its market capitalization to rise to least $1 billion in the fourth quarter after the scheduled listing this month, according to Chairman Do Minh Phu.

The Hanoi-based lender, known as TPBank, plans to sell about a 15 percent stake to investors via a private placement and issue 28 percent of dividend and bonus shares during the last three months of the year, Phu said in an interview in his office Monday. TPBank expects to raise its registered capital to 8.5 trillion dong ($372 million), up from its current 5.84 trillion dong, this year through the shares issuances, he said.

Tien Phong Bank will list 555 million shares at an initial price of 32,000 dong on April 19 on the Ho Chi Minh City Stock Exchange, which will value the lender at about $781 million. The benchmark VN Index has risen 21 percent this year, the best performer in Asia, prompting companies to sell shares to the public or start trading on the exchanges.

“We think the market will continue rising,” Phu said. Vietnam’s bank stocks have been the VN Index’s best performing sector, rising 37 percent this year through March 30, according to data compiled by Bloomberg.

“As the market conditions are very favorable now and bank stocks are also running very well, listing at this time is good,” said Dang Tran Hai Dang, head of research at Vietinbank Securities JSC.

TPBank expects pretax profit to double this year to 2.2 trillion dong with total assets increasing 17 percent to 140 trillion dong, according to the chairman. The lender aims to keep non-performing loans below 1 percent this year, compared with the government’s sector-wide target of below 3 percent.

Bloomberg

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

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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.