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Banking & Finance

TPBank sees market capitalization at $1bn by Q4

Released at: 08:59, 06/04/2018

TPBank sees market capitalization at $1bn by Q4

Photo from plo.vn

Lender to list on April 19 on Ho Chi Minh Stock Exchange.

by My Van

The Tien Phong Commercial Joint Stock Bank (TPBank) expects its market capitalization to rise to least $1 billion by the fourth quarter of this year after its listing this month, according to Chairman Do Minh Phu.

The Hanoi-based lender plans to sell a stake of about 15 per cent to investors via a private placement and issue a dividend of 28 per cent and bonus shares during the last quarter of the year, Mr. Phu said.

It expects to raise its registered capital to VND8.5 trillion ($372 million), up from VND5.84 trillion ($255.9 million). It will list 555 million shares at an initial price of VND32,000 ($1.4) on April 19 on the Ho Chi Minh Stock Exchange, which would value the lender at about $781 million if fully sold. The benchmark VN-Index has risen 21 per cent this year - the best performer in Asia - prompting companies to sell shares to the public or begin trading on the country’s exchanges.

“We think the market will continue rising,” Mr. Phu said. Bank stocks have been the VN-Index’s best performing sector and “as the market conditions are favorable now and bank stocks are also running very well, listing at this time is good,” said Mr. Dang Tran Hai Dang, head of research at Vietinbank Securities JSC.

TPBank expects pre-tax profit to double this year to VND2.2 trillion ($96 million) with total assets increasing 17 per cent to VND140 trillion ($6.1 billion), according to Mr. Phu. The lender aims to keep non-performing loans at below 1 per cent this year, compared with the government’s sector-wide target of below 3 per cent.

TPBank was established on May 5, 2008, inheriting strengths in modern technology, market experience and financial potential from strategic shareholders such as the DOJI Jewelry Group, the FPT Technology Group, the International Finance Corporation (IFC), the Vietnam Reinsurance Corporation (Vinare), and SBI Ven Holding Pte. Ltd. from Singapore.

It constantly strives to provide the most effective banking solutions and products, targeting young and dynamic clients. Based on advanced technology and advanced management, TPBank is a pioneer in modern banking services and aims to become the Number 1 bank in the country.

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