VIB saw a huge deal between foreign investors; BID successfully offered nearly 124 million shares; TCB considered selling 15% of its capital to foreign investors; HDB is still on the journey to find a strategic investor.
VIB saw a huge deal between foreign investors; BID successfully offered nearly 124 million shares; TCB considered selling 15% of its capital to foreign investors; HDB is still on the journey to find a strategic investor.
The story of capital increase and capital sale of banks is very exciting in the market, especially the progress and development of the issuance of large banks in Big4 is starting quite positively.
Specifically, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIBV; stock code BID) announced the successful private issuance of more than 123.8 million shares. The selling price was VND38,800/share, earning more than VND4,805 billion.
Of which, domestic investors bought 38.7 million shares and foreign investors bought nearly 85.2 million shares.
List of institutional investors participating in buying BID shares, Vietnam Enterprise Investments Limited (VEIL) bought the largest quantity with nearly 59 million shares, increasing its ownership ratio at BIDV to 0.845% of charter capital, followed by State Capital Investment Corporation (SCIC, 38.7 million BID shares), Hanoi Investments Holdings Limited (15.7 million BID shares), DC Developing Markets Strategies Public Limited Company (8.5 million BID shares), and Samsung Vietnam Securities Master Investment Trust (1.9 million BID shares).
In addition to the above deal, analysts also expect the bank's plan to issue 9% of its shares privately to strategic investors to be completed in 2025. Sharing at a recent investor conference, BIDV leaders said that the bank is working with potential investors to carry out the first private issuance, with a rate of 2.9% in the first quarter of 2025. The remaining 6.1% will be implemented later, depending on market conditions.
If this deal is successful, according to SSI Research's calculations, BIDV's capital adequacy ratio will improve to 10.5% from the current 9%.
The consortium advising on the deal of nearly 124 million BID shares mentioned above is HSBC - SSI. As the unit implementing the consulting deal, SSI experts believe that the biggest difficulty for the BIDV deal is that the condition for offering individual shares according to Vietnam's regulations is restricted from transfer within 1 year, however , investors cannot buy at a discount but still have to buy at market price, causing investors participating in the offering to be at a significant disadvantage compared to investors buying shares on the stock exchange . Therefore, the way to solve this problem is also the biggest difference compared to previous deals, which is the perseverance and consistency in connecting with investors over a long period of time.
In each deal, the role of the consulting unit is extremely important, not only in connecting investors but also in pricing and structuring the deal, building a sales implementation strategy, making the deal attractive to investors while still ensuring optimal benefits for the business and shareholders.
According to Ms. Hoang Hai Yen, Deputy Director of Investment Banking Services Division, SSI Securities Corporation, in fact, the Vietnamese capital market has always been noticed by banks as a capital mobilization channel. Deals advised by SSI for private issuance such as TPB, HDB in 2018, MBB in 2020; and other deals in the market such as GIC's investment in VCB in 2019, or the participation of strategic shareholders such as Keb Hana in BIDV and SMBC in VPB are typical examples. Therefore, the success of BIDV's share offering could be meaningful in continuing to promote banks to diversify their capital mobilization channels, especially the state-owned banking sector, which has strict requirements on offering conditions. This is especially meaningful in the context that the Vietnamese capital market is expected to develop strongly with the prospect of being upgraded to an emerging market by FTSE this year.
In addition, with the prospect of market upgrade by FTSE and corporate governance reforms, investment capital flows into Vietnam's capital market are expected to increase sharply in the coming time, opening up many capital mobilization opportunities for banks and other businesses.
Besides BID, the deal of another Big4 bank that is also highly anticipated is Vietcombank (VCB), which also plans to issue shares privately at a rate of 6.5% and is expected to be implemented in the first half of 2025. Recently, VCB also finalized the list of shareholders to pay dividends in shares with an issuance rate of up to 49.5%, thereby increasing its charter capital from VND 55,890 billion to VND 83,557 billion, the highest in the current banking system.
Last week, a huge deal in VIB bank shares also caught the market's attention. According to information from SSI, the co-bookrunner and advisor for this transaction - CBA has completed the sale of the remaining 4.4% of shares in Vietnam International Commercial Joint Stock Bank (VIB), with a transaction value of VND2,760 billion, equivalent to USD108 million, which was completed on March 5.
With CBA no longer being a strategic shareholder of VIB, SSI Research assessed that VIB will have more opportunities to seek a new strategic partner through private placement in the near future. This move will not only help increase capitalization but also bring valuable expertise and synergies in operations, supporting long-term business expansion and enhancing competitiveness.
In late 2024, Techcombank's leadership informed about considering selling 10-15% of shares to long-term strategic investors, especially prioritizing partners with technological capabilities. At that time, the foreign ownership ratio (foreign room) at Techcombank was 22%, but Techcombank still assessed the ratio of 15% as feasible, because a shareholder owning 8-9% of shares was planning to divest, creating conditions for this deal to be carried out.
On the stock market, TCB shares are performing quite positively due to expectations of an IPO of its subsidiary, Techcombank Securities Company (TCBS), and the catalyst of selling capital to foreign partners, in addition to quite positive fundamental indicators.
Many deals are also expected to have new developments in 2025, such as Nam A Bank and LPbank in the process of negotiating with foreign partners to find suitable strategic investors.
Or with HDBank, it has asked for shareholders' opinions on temporarily locking foreign room from 20% to 17.5%, in order to prepare for strategic projects . The temporary locking of foreign room is to prepare for the bank's strategic projects in the coming time, ensuring compliance with regulations and in accordance with the investment needs of foreign shareholders.
Up to now, the story of HDBank's search for foreign partners is being evaluated by analysts as a strong catalyst, creating the idea of investing in HDB shares. In addition, there is information about the credit growth room being much higher than the industry average thanks to the forced transfer of weak banks.
In 2025, commercial banks are expected to compete to increase charter capital, through two main forms: paying dividends in shares, and/or increasing capital through private issuance. Increasing charter capital is aimed at improving the capital adequacy ratio (CAR) and meeting the funding needs for credit growth throughout the year, in the context of the Government setting an economic growth target of at least 8%.
Source: https://baodautu.vn/ngan-hang-soi-dong-chuyen-nhuong-von-tang-von-d251850.html
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