Vietnam's Biggest Insurer to List on Bourse in 2008

Bao Viet Group, Vietnam’s biggest insurance firm, said in its shareholder meeting October 4 that it is preparing legal and financial procedures for listing on the local stock market in 2008.

 

The company chooses the Ho Chi Minh City Stock Exchange, Vietnam’s main bourse, to list 8.9 per cent of its total shares.

 

At present, three foundation stakeholders, including Ministry of Finance, Vinashin and HSBC, are holding 91.43 per cent stake in the firm, in which, HSBC is committing to keeping the shares in the first five years and Vinashin three years.

 

The group, with a registered capital of VND6.8 trillion, ranks first in Vietnam's non-life insurance market with a 35 per cent market-share and ranks second in life insurance with 36.5 per cent market share, behind Prudential's 41.6 per cent share.

 

In late May, the Hanoi-based insurer offered 59.44 million shares, or 8.74 per cent of its stake, to public via IPO. However, the sale was not successful as expected because the firm sold only 73.7 per cent of total amount offered.

 

The firm recently reported its seven-month revenues of VND4.2 trillion (US$262.5 million), making up 58 per cent of the full year target. Revenues from non-life premiums were VND1.26 trillion, from life premiums VND1.87 trillion, and from financial investment VND899 billion. (Labor)