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Banking & Finance

Vietnam fourth in Asia-Pacific IPO listings

Released at: 08:19, 15/06/2018

Vietnam fourth in Asia-Pacific IPO listings

Photo: HDBank

Baker McKenzie releases "North American Capital Raising Drives Cross-Border IPOs" report.

by Linh San

Vietnam was the fourth-highest Asia Pacific-based issuer in the first half of 2018 in terms of value, after China, India and Japan, according to the “North American Capital Raising Drives Cross-Border IPOs” report released recently by Baker McKenzie.

“Interesting to note is that Vietnam has toppled traditional money markets in Asia-Pacific such as South Korea, Singapore and Australia,” the report said. “Issuers from the country raised $2.3 billion from three domestic listings (Vinhomes JSC, Techcombank, and An Giang Urban Environment Company).”

Overall IPO value stood at $31.9 billion, down 21 per cent year-on-year, while 400 deals were recorded, a fall of 31 per cent. Both declines are replicated across domestic and cross-border markets, with domestic value falling 22 per cent to $26 billion and volume down 34 per cent at 360 deals, while cross-border value fell 12 per cent to $5.6 billion and volume held at 40 deals.

Despite the drop-off in activity, the Asia-Pacific cross-border index grew by over 21 per cent to 15.9 as the share of cross-border listings in the region increased to 18 per cent (from 16 per cent in the first half of 2017) in terms of value and to 10 per cent, from 7 per cent, in terms of volume.

“Geopolitical uncertainty and market volatility have been behind a slide across all metrics in Asia-Pacific, but the region has still managed to retain its place as the most active,” the report said.

Case Study:

Issuer: HDBank - the second-largest deal ever in Vietnam’s banking sector

• HDBank is one of the Top 10 joint stock commercial banks in Vietnam, offering a wide variety of financial services to retail customers, corporations and investors.

• HDBank was the first Vietnamese bank to IPO in 2018 and was the second-largest deal in the history of Vietnam’s banking sector.

Features: Listing of shares on the Ho Chi Minh Stock Exchange (HSX)

• Offering of 980 million shares with an opening price of $1.76 per share.

• Those buying shares in the IPO included over 76 foreign investors, such as Japan’s Credit Saison Co Ltd, Germany’s Deutsche Bank AG, and the JPMorgan Vietnam Opportunities Fund.

• HDBank emerged from the IPO with a value of around VND32.4 trillion ($1.43 billion).

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