The state-owned Industrial and Commercial Bank of Vietnam (Vietinbank) plans to sell a 25 per cent stake to domestic and foreign investors in the forthcoming initial public offering (IPO) by the end of this year, said Vietinbank Chairman Pham Huy Hung.
The bank may sell an additional 24 per cent to the public by 2010 to reduce the state ownership in Vietinbank to 51 per cent.
Vietinbank has completed the sales of shares and received the government’s approval to add nearly VND4 trillion to its registered capital. The share sale is expected to increase its capital by 25 per cent to VND13 trillion (US$812.5 million).
The U.S.’s JP Morgan is selected as the consultant to build its privatization plan for Vietinbank.
Vietinbank has also hurried to complete procedures to sell shares in its offshoots, joined hands with some strategic partners to set up new firms in financial and banking sector in a bid to raise its operation efficiency, Hung said.
Currently, eight foreign banks from UK, U.S., Germany, France and Japan are seeking to join negotiations to become strategic shareholders in Vietinbank.
So far, the privatization process of many large state-owned enterprises (SOEs) has lagged due to the stock market slump. Previously, the IPOs of some big SOEs such as Vietcombank, Sabeco and Habeco saw no good results, with low subscription.
Vietinbank is among five banks, which are included in 104 SOEs Vietnam will sell shares from now to 2010, Prime Minister Nguyen Tan Dung said earlier this year.
In the first five months of 2008, Vietinbank has seen the capital growth of 13 per cent-14 per cent and lending growth of 16 per cent. Currently, it accounts for 15 per cent banking market share. (Securities Investment May 29, Labor)
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