BizLIVE - The bank expects to pocket around $300 million from an IPO this month.
Vietnam’s HDBank Plans to Sell 20% to Foreign Investors, Aims to Raise $300 Million
A transactions office of HDBank.
Vietnam’s Ho Chi Minh City Development JS Commercial Bank (HDBank), among the mid-sized lenders in Vietnam, plans to sell up to a 20% stake at an initial public offering (IPO) to foreign investors this month, from which the bank expects to pocket around $300 million, a banker has said.
The bank would offer each foreign investor a less than 5% stake through the IPO, HDBank’s Deputy General Director Le Thanh Trung told Reuters, adding it plans to list shares on the Hochiminh Stock Exchange early next year.
The lender aims to be a leading retail digital bank in Vietnam in the next five years, Trung said.
Over the past five years, the bank has seen its profits grow by an annual average of 35% a year, while profits are expected to increase about 25% annually in the coming years, the executive added.
As of September this year, the Ho Chi Minh City-based bank had total assets of 174.6 trillion dong (around $7.7 billion), up 26% from a year earlier. It also expects to book a pretax profit of 2.4 trillion dong this year.
After merging Dai A Bank JS Commercial Bank (DaiABank) into it in 2013, HDBank has now a registered capital of 8.1 trillion dong ($356.8 million). Billionaire Nguyen Thi Phuong Thao, CEO of low-cost carrier VietJet Air, is vice chairperson of HDBank.
Amid speculation in 2013 that HDBank would sell a 30% stake to Japanese partners, Chairwoman Nguyen Thi Bang Tam said the bank was still searching out for foreign partners. Besides Japanese companies that showed interest, some European investors were also keen to buy its shares.
Tam currently also chairs Vietnam Dairy Products JSC, known as Vinamilk – the largest listed company in the country.
In an interview with Bloomberg on the sidelines of the APEC CEO summit in Da Nang two weeks ago, Thao said that a number of investors from Hong Kong, Japan, and South Korea had expressed interest in acquiring shares of the bank.