Techcombank is expected to make debut on Ho Chi Minh Stock Exchange (HoSE), offering over 1.16 billion shares at VND128,000 (US$5.64) apiece.
At the price, Techcombank was ranked the second position in the market at VND149 trillion (US$6.5 billion) after Vietcombank at VND192 trillion ($8.4 billion).
Techcombank’s capitalisation is 1.5 times higher than the other two leading banks, namely BIDV and Vietinbank.
The listing is scheduled to be on HoSE on June 4, said said the bank’s CEO Nguyen Le Quoc Ah at the pre-listing conference on May 23.
By the end of April, Techcombank successfully sold 164 million shares to foreign investors. Under the price of VND128,000 (US$5.64) apiece, the sale saw a return of VND21 trillion (US$922 million).
The lender got a boost in March when Warburg Pincus agreed to invest more than $370 million in the bank, in the largest ever private equity investment in the Southeast Asian nation.
Morgan Stanley, Viet Capital Securities and Deutsche Bank are the joint global coordinators for the issue.
Established in 1993, Techcombank is one of the largest private sector joint stock commercial banks in Vietnam in terms of total operating income and pre-tax profit as of 2017, and one of the most profitable banks in Asia, stated the Vietnamese lender. Moody’s also gave Techcombank one of the highest ratings among Vietnamese private joint stock banks.
The 25-year-old bank provides a broad range of banking products and services to more than 5.4 million customers in Vietnam with an extensive network of 315 branches across the country.
Techcombank’s revenue in 2017 was estimated at VND28.7 billion (US$1.2 million) by the firm’s financial report released on February 28, while total expenses reached VND7.1 billion (US$313,000).
Consequently, the firm’s pre-tax-profit accounted for VND22.5 billion (US$992,250).
In 2017, Techcombank achieved total operating income of VND16.1 trillion and profit before tax of VND8.5 trillion (US$708 million and $373 million, respectively), according to the bank’s financial statement. Techcombank had industry leading profitability in 2017 with return on average equity of 28.0 percent and return on average assets of 2.7 percent.
Equity issues are booming in Vietnam as it speeds up a privatisation drive. Strong interest from foreign investors and local funds has pushed up the benchmark index.VNI by 19 percent so far this year, making it one of Asia’s best performers after rising nearly 50 percent last year.
