BIDV to make its IPO in mid 2011

November 28, 2010 | 17:00

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BIDV, the country’s third largest state-owned commercial bank, is locked into its long-awaited initial public offering next year.

A high-ranking BIDV source said the initial public offering (IPO) was scheduled for 2011’s second quarter regardless of the securities market’s mood at that time.

“We will submit to the government a shortlist of foreign strategic partners in December or January next year,” said the officer.

The IPO will be based onthe bank’s chartered capital of around VND15 trillion ($789 million), which will soon be increased. Of which, the bank plans to sell up to a 20 per cent stake to investors and staff. The foreign strategic partner is estimated to hold 10 per cent.

“We have not yet finalised the shortlist of foreign strategic partners as negotiations are still underway,” the source said.

The bank reportedly has completed equitisation of its affiliates including its securities and insurance companies as well as diverting its operation model of state-owned commercial bank into one membership limited company. It had total asset values of VND285 trillion ($15 billion) by the end of February, this year.

BIDV is three years behind its initial equitisation schedule and will be the fourth state-owned commercial bank in Vietnam to equitise following Vietcombank, Vietinbank and Mekong Housing Bank (MHB) which is scheduled to complete its equitisation this year with chartered capital of VND4.4 trillion ($231.5 million).

By Van May

vir.com.vn

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