Housing Development Bank (HDBank) will offer 20 per cent of its shares to foreign investors at its initial public offering (IPO).
|HDBank's IPO is expected to take place sometime this month
According to Reuters, the IPO is expected to be conducted in November, however, HDBank has yet to disclose the official date.
Unlike other lenders in Vietnam, the bank does not seek a single strategic investor who would normally hold 15 per cent of the shares. Instead, it will court four overseas investors, offering less than 5 per cent of ownership to each. At present, numerous foreign investors from Hong Kong, Japan, and South Korea expressed interest in becoming HDBank’s foreign investors.
The pre-listing share sale is expected to raise $300 million for the bank, which counts Vietnam’s first female billionaire Nguyen Thi Phuong Thao as its major shareholder.
After completing the auction, HDBank said that it would list on the Ho Chi Minh City Stock Exchange in early 2018.
HDBank reported bright business results. For the first nine months of 2017, HDBank reaped VND1.91 trillion ($84 million) in pre-tax profit, of which the parent bank earned VND1.7 trillion ($74.8 milion). This result, which is 1.5 times higher than the entire year of 2016, marked the bank’s highest achievement so far.
Assets under management reached VND174.5 trillion ($7.6 billion), a 26-per-cent increase from the same period last year. Bad debt takes up less than 1.14 per cent of all outstanding loans.
HDBank’s return-on-assets ratio is 1.18 per cent, while returns-on-equity stood at 18 per cent as of the third quarter of 2017.