VNStockNews.com - Bank for Investment and Development of Vietnam (BIDV) on Wednesday said it would sell 3% of its shares, equivalent to over VND847 billion out of total chartered capital of VND28.2 trillion, in its initial public offering (IPO) this month.
The IPO would make it the country’s second largest lender by assets and the third State-owned bank to go public after Vietcombank and Vietinbank.
The Government on Wednesday released decision 2124/QD-TTg to approve the lender’s two-phase equitization plan under which the bank will maintain current State capital while issuing shares to raise its chartered capital. In both phases, the State stake will be not lower than 65%.
BIDV in a statement released on Wednesday said it would sell a 15% stake to a foreign strategic investor in the first phase. The State will hold the majority stake of over 78% while 1% will go to staff and another 3% will go to the bank’s trade union.
In the second phase, the stake to be sold to the foreign investor would be increased to 20% of the Hanoi-based lender’s chartered capital, cutting the State ownership to over 65% by 2015.
Tran Bac Ha, chairman of BIDV, said the IPO will be launched in the final week of the year. Then, the lender would offer shares to staff and the trade union to turn it into a commercial joint stock bank before choosing foreign investors, listing on the local stock market and listing overseas at a suitable time.
“BIDV will select a well-known financial institution as its foreign strategic partner that could provide long-term commitment and support in corporate management, risk management, service and product development and advanced technology application. The investor is entitled to join BIDV’s managing organization following the law,” Ha said in the statement.
BIDV in recent times has held a number of meetings with the investment community and there have been over 40 financial institutions expressing an interest in the lender’s equitization. BIDV will choose its foreign strategic partner via the consultancy of Morgan Stanley.
The bank as of now posted VND403 trillion (some US$19 billion) in total assets, VND274 trillion in capital mobilization and over VND268 billion in credits. The lender had a pre-tax profit of VND4.4 trillion and a CAR (capital adequacy ratio) of 10%.
The bank recently conducted equitization for BIDV Securities Single Member Limited Liability Company and BIDV Insurance Company and merged two financial leasing companies.
