The Vietnamese stock market is steadily reviving with growing liquidity. This is seen a good time for enterprises to list shares on the local stock exchanges this year. Many banks have unveiled their plans to list shares this year.
Eximbank makes a debut
On August 19, 2009, the General Annual Meeting of Vietnam Export Import Commercial Joint Stock Bank (Vietnam Eximbank) approved the share listing plan at the Ho Chi Minh Stock Exchange (HOSE) in 2009. The Board of Directors was authorized to complete procedures for the listing.
Eximbank is working with its consultant, Rong Viet Securities Co, to complete required procedures in order to soon go on the bourse, possibly in September.
Previously, on July 9, 2009, Eximbank Vietnam announced to issue bonus shares from its capital surplus to existing shareholders. Following the additional share issuance, the lender’s chartered capital will be added VND1,580 billion to reach over VND8,800 billion, becoming one of the largest joint stock commercial banks in the country. After listing, the market capitalisation of the bank will be amongst the top on the Vietnamese stock exchange. Currently, shares in Eximbank are the top pick on the over-the-counter (OTC) market. With its listing plan, shares in Eximbank have advanced 20 % from the 2009 General Annual Meeting. The lender’s shares were quoted over VND26,000 on August 10. The liquidity is amongst the highest on the OTC market. According to Viet Dragon Securities Corp, the authorised manager of Eximbank’s shareholder books, around 1-2 million Eximbank’s shares are transferred daily.
If this is the case, Eximbank will be the sixth bank listing on the Vietnamese stock exchanges after Asia Commercial Bank (ACB) on HNX, Saigon Thuong Tin Commercial Joint Stock Bank (STB) on HOSE, Saigon – Hanoi Commercial Joint Stock Bank (SHB) on HNX, Vietnam Joint Stock Commercial Bank for Industry and Trade (CTG) on HOSE, and Joint Stock Commercial Bank for Foreign Trade of Vietnam (VCB) on HOSE.
For new banks
Apart from Eximbank Vietnam, four other banks have disclosed their listing plans, including Military Bank (MB), Saigon Commercial Bank (SCB), Nam Viet Commercial Joint Stock Bank (Navibank) and Lien Viet Commercial Bank (LienVietBank). Navibank, MB and LienVietBank may highly list their shares this year or early next year.
On August 20, Navibank also officially asked for opinions from its shareholders on doubling the chartered capital from VND1,000 billion (US$60 million) to VND2,000 billion, completing the bank's charter in order to meet the listing requirements at HNX. Nguyen Vinh Tho, President of Navibank, the lender is expected to list shares, expected ticker of NVB, on northern HNX in the fourth quarter of 2009 or in the first quarter of 2010. The listing plan is aimed to boost the liquidity of its shares, enhance corporate governance and improve business transparency of Navibank. And, like other enterprises, Navibank eyes to approach and create a long-term capital raising channel through the stock market.
The board of directors of Military Bank was authorised to select the listing bourse and its main focus is now HOSE. The board is also allowed to determine negotiated prices at the time of share issue to strategic partners, potential partners, which are not 15 % less than the market price. Additionally, shares sold to MB's employees will not be transferable within one year since the issue date.
Yet another bank also plans to list on the bourse earlier the next year, the newly-established LienVietBank. LienVietBank General Director Nguyen Duc Huong said that the bank is expanding its network and seeking strategic shareholders to strengthen its capability. After that, the bank will proceed with its plan to list on the HOSE. Huong said that LienVietBank expects to have the required the chartered capital of VND5,000 billion when it lists on HOSE the next year.
Saigon Commercial Joint Stock Bank’s listing plan will be later because of some problems regarding procedures. Pham Anh Dung, General Director of SCB, said the bank was previously expected to float its shares on HOSE this September but it was delayed due to revisions to some articles in its charter in accordance with HOSE regulations and add some members into the managing board. Those preparations must be approved by the shareholder meeting, which will have to wait until the start of next year.
Eximbank, MB and SCB are large-scale banks and will be likely list on the bourse first. The three lenders will have the combined market capitalisation of at least VND35 trillion. The scope of listing will also present significant impacts on the overall index. Eximbank is planning to raise the chartered capital to VND8,800 billion, MB has the chartered capital of VND3,820 billion and SCB with VND3,636 billion.
Ha Le
Vietnamese
