Ho Chi Minh Stock Exchange (STC) on December 2 announced that it would hold a maiden IPO for the Bank for Industry and Trade of Vietnam (Vietinbank) on December 25.
Accordingly, Vietinbank with a chartered capital of 13.4 trillion dong will auction 53.6 million shares at the face value of 10,000 dong par. The starting price will be announced soon in accordance with auction regulations. However, some sources said that the initial price will arranged between 16,000 dong per share and 20,000 dong per share.
The time to register and deposit is from December 8.
Earlier on September 23, the prime minister issued a Decision No 1354/QD-TTg approving the plan to equitise Vietinbank. Under the decision, the bank will maintain the state's holding of about 51% stake and issue more shares to mobilise capital.
Under the approved plan, the total volume of shares that Vietinbank was allowed to offer will account for 20% of its chartered capital, of which 5% stake will be auctioned to the public and the domestic strategic investors and 10% will be sold to the foreign strategic investors. The bank would choose the most suitable time to sell shares to the international market.
In addition, the bank was allowed to choose two foreign strategic investors with a share volume held by these investors of not exceeding 20% stake under the negotiation method and in accordance with the regulations of the market and the law.
In related news, Vietinbank signed a bilateral payment contract with the Vietnam Development Bank (VDB) on December 2 in Hanoi.
VDB's representative said that VDB will allocate a large amount of capital from the state budget yearly. Of which, in 2007, VDB disbursed exceeding 33 trillion dong of the year's target. Through this contract, Vietinbank will become main bank in VDB's payment activities. The two signatories will jointly carry out joint venture and cooperation in expansion, development and exploitation of potential and strengthen of each other.
Last year, these two banks signed a strategic cooperation agreement and other contracts to provide international payment services and trade sponsors.
