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Banking & Finance

SCIC to auction more than 2.4mn Maritime Bank shares

Released at: 17:24, 27/02/2018

SCIC to auction more than 2.4mn Maritime Bank shares

Photo: Duc Anh

Shares to be auctioned on March 28 at Hanoi Stock Exchange with an initial price of $0.54.

by Hai Van

The State Capital Investment Corporation (SCIC) will put more than 2.4 million shares of Maritime Bank up for public auction on the Hanoi Stock Exchange on March 28.

The initial price will be VND12,400 ($0.54) per share, and interested investors must register to buy the entire offering.

This is the second attempt by SCIC to offload Maritime Bank’s shares since its failure in November 2015. Experts, however, have predicted that this auction too will fail due to overpricing, since Maritime Bank’s shares are being traded at some VND7,000 ($0.3)-VND8,000 ($0.35) per share on the over-the-counter (OTC) market.

Moreover, the share offering accounts for only 0.3 per cent of the bank’s charter capital, which would allow little influence by the investor over the bank’s management.

Founded in 1991 in the northern port city of Hai Phong, Maritime Bank had initial charter capital of VND40 billion ($1.7 million). It was relocated to Hanoi in 2005 and acquired the Mekong Development Commercial Joint Stock Bank in 2015, lifting its charter capital to VND11.75 trillion ($516.39 million), with total assets of some VND104 trillion ($4.5 billion).

The Vietnam Posts and Telecommunications Group (VNPT) previously announced a third auction of more than 71 million shares of Maritime Bank, equivalent to 6.09 per cent of its capital, at a minimum price of VND11,900 ($0.52) per share. Its two previous auctions, in March 2017 and January 2018, failed to draw investors.

The lender is one of the most aggressive commercial banks to sell bad debts to the Vietnam Asset Management Company, with a total value of almost VND10 trillion ($439.48 million) by the end of 2015.

Prices of Maritime Bank’s shares on the OTC market have doubled in the last year, from VND4,000 ($0.17) to VND8,000 ($0.35), owing to active divestment by stakeholders.

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