BIDV to List in 2008

The Bank for Investment and Development of Vietnam (BIDV), one of five largest commercial banks in Vietnam, has announced its plans for initial public offering (IPO) and to list its shares o the stock market in the coming time. General Director of BIDV Tran Bac Son Ha affirmed that BIDV will go public within 2007. Ha said BIDV has submitted its detailed equitisation plan to the Prime Minister for approval in September 2007.

 

Ha said one of the big advantage for the equitisation determination of BIDV is the government’s permit to provide VND3,400 billion chartered capital to BIDV in February 2007. Besides, the Moody’s Investors Service upgraded bank financial strength rating (BFSR) of BIDV from ‘E’ to ‘E+’ while other rating indexes remain national ceilings, Bal level. In bad debt settlement, BIDV continued reaping successes in the first quarter of 2007. The bad debt ratio of BIDV stood at 6.44 per cent, down 2.6 per cent against the early period of this year. The bad debt is reduced by nearly VND2,500 billion, better than its initial expectation. “With this positive growth rates, BIDV can reduce its outstanding debt ratio below 5 per cent earlier than its expected plan, possibly in the third quarter of this year,” Ha stressed.

 

The bank has also obtained a permit from the Prime Minister to pick up international consultants for its IPO and basically complete contents for the consultant selection rounds of BIDV. “The bank has issued IPO consultant applications. Five bidders are Goldman Sachs, JP Morgan, Merrill Lynch, Morgan Stanley and UBS”, Ha added.

 

The winners and consulting contracts will be announced in June. BIDV will make initial public offering (IPO) in the fourth quarter of this year. BIDV shares will be listed at the securities trading centres in late 2008 at the deadline. The selling of its stakes to strategic shareholders will be conducted in the form of negotiations and agreements but the prices will be not lower than the rates of its share debut auction. Six months after being equitised, the bank will list its shares on the Ho Chi Minh City Securities Trading Centre (HSTC) and on regional bourses.

 

By the end of the first quarter of 2007, BIDV’s total assets value reached VND184,780 billion (US$11.5 billion), up 10.2 per cent against the early 2007 and 47.7 per cent against the same period last year. It raised VND142,844 billion, up 17.4 per cent against early 2007 and 59.3 per cent on year.