Vietnam: VPBank to list on Aug 17, seeks $2.3b market value


Vietnamese commercial lender VPBank will list over 1.3 billion shares on the Ho Chi Minh City Stock Exchange on August 17 with an expected market value of $2.3 billion, the bank said on Friday.

The bank said the reference price for the debut will be VND39,000 apiece.

The Hanoi-headquartered lender will become the fourth largest bank in terms of market value in the country following the listing, after state-owned Vietcombank ($5.9 billion), BIDV ($3 billion) and Vietinbank ($3.12 billion).

VietCapital Securities values the final target price for VPBank shares, which will be floated under the ticker VPB, at VND55,000. It added that the valuation will realistically break the $4 billion mark in two years.

Foreign institutional investors hold a combined 22.34 per cent stake in the bank. Meanwhile, the International Finance Corporation (IFC) is poised to become one of the early major shareholders in VPBank after the World Bank Group’s financial arm converts its loan to a maximum of 5 per cent stake. On July 18, the lender announced a $57 million convertible loan from the IFC.

VPBank has also said it plans to sell as much as 15 per cent equity interest in a private placement following the listing.

The bank is among the fastest growing in global frontier markets and the Southeast Asia region, according to VietCapital Securities. Its ROA rate in 2016 reached 1.9 per cent compared to the 0.8 per cent rate gained by peers.

VPBank targets consumer credit and small and medium-sized enterprises (SMEs) as its strategic market. Its consumer finance unit FE Credit reportedly has a lion’s share at 48 per cent of the industry. Meanwhile, its annual report for 2016 showed a 30 per cent growth in loans to SMEs and micro businesses.

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