Saigonbank to sell nearly 8.3 million BVB shares

The headquarters of Viet Capital Commercial Joint Stock Bank in District 3, HCM City.- Photo vnexpress.vn

The announcement was released more than half a month after the previous auction was cancelled because no investors participated.

Accordingly, the number of BVB shares that Saigonbank offered for sale was nearly 8.3 million, equivalent to 2.23 per cent of BVB’s capital. The deal is executed through public auction at the Ho Chi Minh Stock Exchange (HoSE), with a minimum purchase order of 100 units.

Investors can start registering from July 28 to August 17 at auction agents according to regulations issued by Saigonbank.

With the reserve price of VND22,800 per share, the deal is worth more than VND188 billion.

In the previous auction, HoSE said that as of 4pm on July 14, the exchange’s auction system recorded no investors participating in auction registration. The auction was cancelled due to ineligibility to proceed.

On UpCOM, BVB shares were traded at VND17,900 per share on Monday, down around 20 per cent compared to the reserve price offered by Saigonbank.

Saigonbank shares, which are also listed on UpCOM, closed Monday's trade at VND16,200 per share, down 2.41 per cent.

In April, Saigonbank announced a plan to transfer capital at BVB. The reserve price at that time was VND15,610 per share.

On the business results front, in the second quarter, BVB earned VND185 billion in profit before tax, 13 times higher than that of the same period last year. In the first six months, its profit reached VND337 billion, over five times higher than the same period last year. The growth was mainly due to improvements in the credit segment and cuts in provision costs.

Meanwhile, in its second-quarter result, Saigonbank posted a gain of nearly 9 per cent year-on-year in profit before tax to VND136.8 billion in the first half of the year, exceeding its whole year plan in terms of profit.