BIDV delays listing debut over market woes

June 21, 2012 | 13:57

(0) user say

The Bank for Investment and Development of Vietnam, or BIDV, will delay its plan to begin trading on the Ho Chi Minh City Stock Exchange (HSX) until Q3/2012, the bank’s CEO Pham Quang Tung has announced.

bidv

Tung said the move was made following a recent slump on the Vietnam stock market, together with the slide of the benchmark VN-Index, which has lost 12 percent since early May.

BIDV issued a 3 percent stake in its initial public offering (IPO) last December and planned to make a debut on the market on June 26.

However, the plan has been delayed until the third quarter, as under current laws companies are allowed to delay listing for as long as a year after an IPO, the CEO said.

“The stock market conditions are still not very favorable, so listing at this time may negatively affect the stock value, as well as hurt shareholders and investors,” said Tung.

“We expect the trend in the market will be clearer in the third quarter, and will recover well in the second half.”

Earlier, in a regular shareholder meeting on February 28, BIDV Chairman Tran Bac Ha said that given the current state of the stock market, it is impossible to know the exact timing for BIDV’s listing on HSX.

However, he also promised shareholders that the listed price of BIDV shares will be at least 150 percent of the IPO price, which was VND18,583 per share.

National flag-carrier Vietnam Airlines has also delayed its IPO plan this year over the stock market volatiles.

TuoiTrenews

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional