Monday, December 17 2018

VietNamNews

HDBank shares surge on market debut

Update: January, 06/2018 - 11:00
HDBank listed around 981 million shares on the HCM City stock exchange on Jan 5.—Photo VNS
Viet Nam News

HCM CITY — Around 981 million shares of HDBank listed on the HCM City Stock Exchange on Thursday at VNĐ33,000 (US$1.46).

After the listing, HDBank, or HCM City Development Bank as it is formally known, has become one of the 20 heavyweights on the southern bourse with a market capitalisation of $1.43 billion.

Soon after opening, HDB soared 17 per cent to VNĐ38,600, not too far from the daily ceiling of 20 per cent.

It went on to hit the ceiling, closing at VNĐ39,600.

The volume topped 32.3 million shares, with foreign investors buying more than 5 million.

Earlier the bank had raised more than $300 million by selling a 21.5 per cent stake to foreign investors.

Foreigners can buy another 8.5 per cent to reach the maximum permitted 30 per cent whereas in many other listed banks the limit has already been reached.

HDBank is the first bank to go public in 2018 and the eighth lender to list on HoSE.

Fred Burke, managing partner of Baker & McKenzie Law Firm -- the legal advisor to HDBank, which also advised the listing of budget airline Vietjet Air -- said: "Listing like this one really shows how far Việt Nam has come in terms of building its own capital market."

He told Việt Nam News that the airline has gained a lot of visibility globally and the bank also has some very strong selling points, which would attract investors.

"For example, its non-performing loans ratio is very small compared to other banks in Việt Nam."

Last year, the bank earned a pre-tax profit of VNĐ2.42 trillion, or 110 per cent up from 2016.

Its non-performing loans ratio was 1.1 per cent. — VNS

 

 

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