Vietinbank Conducts Most Successful IPO in 2008

The Hochiminh Stock Exchange (HOSE) announced that the state-run Vietnam Bank for Industry and Trade (Vietinbank) sold out all of its shares offered in its initial public offering (IPO) on the Christmas Day [December 25], marking the biggest and most successful auction of the year.

 

The bank sold all 53.6 million shares to 12,946 investors at an average winning price of VND20,265 each. Of the total, foreigners bough 874,397 shares.

 

Up to 12,982 domestic and foreign investors had registered to attend the auction, seeking to buy 55.8 million shares at the price ranging from VND20,000 and VND45,000, versus the starting price of VND20,000.

 

After the auction, Vietinbank raised a total of VND1.1 trillion (US$66.7 million). Analysts said the success of the bank's auction is attributed to its proper value appraisal and suitable initial price amid the falling securities market in the country.

 

Besides the 4 per cent stake offered to public, Vietinbank will also sell 3.3 per cent stake, or 44.2 million shares to domestic strategic investors, 10 per cent stake, or 134 million shares to foreign strategic partners, and 1.7 per cent stake, or 22.8 million shares to its employees.

 

Despite the global and local financial turmoil, Vietinbank's successful IPO indicates that both domestic and foreign investors are still interested in the emerging stock market of Vietnam.

 

Under the plan, the Hanoi-based lender will list its shares in the country's stock exchange in April 2009. (ATP, The People)