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Banking & Finance

Techcombank expects to raise $162.74mn from foreign investors

Released at: 10:08, 05/03/2018

Techcombank expects to raise $162.74mn from foreign investors

Photo from bizhub.vn

Bank to sell over 158 million treasury shares to foreign investors after listing on HoSE this year.

by Ngoc Han

Techcombank plans to list on the Ho Chi Minh Stock Exchange (HoSE) this year and sell over 158 million treasury shares to foreign investors, its Chairman Ho Hung Anh told the annual shareholders’ meeting on March 3. It plans to sell the treasury shares to foreign investors at a minimum price of VND23,445 ($1.03) and raise at least $162.74 million from the sale.

The Chairman said the bank will prioritize investors from the US and Europe and the proceeds will be used to increase assets, expand its network and credit operations, and invest in government bonds.

The bank also plans to sell 14 million preferred shares from the treasury stock to its employees in the second quarter of this year. it had planned to list on HoSE last year but felt the timing was not right, Chairman Hung Anh said. “With the bank’s plan to sell shares to foreign investors and employees, 2018 is the right time to list on the stock market,” he explained.

Techcombank recorded pre-tax profit of VND8 trillion ($352 million) in 2017 and targets VND10 trillion ($440 million) this year, up 24 per cent. Total assets are expected to reach VND315.2 trillion ($13.8 billion), up 17 per cent.

It proposed repurchasing shares from existing stakeholders last June and to keep those as treasury shares. As part of the plan, HSBC sold its entire 172 million shares to Techcombank at VND23,445 ($1.04) per share. The shares previously accounted for 19.4 per cent of Techcombank’s charter capital and are currently priced at a total of VND4 trillion ($178.1 million).

With that sale, foreign ownership in Techcombank is officially at zero per cent. The bank has expressed an intention to increase the level of foreign ownership but no higher than 30 per cent of charter capital.

The State Bank of Vietnam (SBV) recently gave approval for Techcombank to sell its entire stake in its financial arm, Techcom Finance, to the Lotte Card Company, which is part of the South Korean chaebol the Lotte Group. While not disclosing the specific value of the deal, Chairman Hung Anh stressed that selling its financial arm would help aid the bank’s growth.
 

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