Bank leaders collect ‘king stocks’

22-Oct-2020 Intellasia | Dau tu Chung khoan | 6:02 AM Print This Post

Banks’ change of stock exchange has influenced “king stocks” in recent time. It is the reason why bank leaders and their relatives have taken the opportunities to collect shares or make divestments.

Deputy Chair of the Board of directors cum general director Military Commercial Joint Stock Bank (MBB) Luu Trung Thai has registered to buy 1 million MBB shares in the period from October 21st to November 19th 2020 by order matching method. If the transaction is successful, Thai will race his ownership rate at MBB from more than 1.54 million shares to more than 2.54 million shares.

MBB shares are currently traded at around 18,200 dong per share (in the morning October 19th). It is estimated that Thai will have to spend about 18.2 billion dong on this deal.

Previously, on October 4th, Jens Lottner, the new general director of Vietnam Technological and Commercial Joint Stock Bank (Techcombank, TCB) completed a purchase of 439,000 TCB shares from Viet Capital Securities Company (VCSC). Based on the price of 22,500 dong per share, it is estimated that Jens Lottner’s securities assets reached approximately 10 billion dong after the transaction. At the same time, Jens Lottner has become a Techcombank’s shareholder with an ownership rate of 0.0125 percent of the bank’s charter capital.

Recently, Techcombank has actively expanded its foreign ownership room from 22,4951 percent to 22,5076 percent of charter capital, in order to raise the limit for foreign workers to buy shares.

Another noteworthy transaction is the transaction of Le Dieu Linh, wife of Hoang Linh Chief Financial Officer of Vietnam International Commercial Joint Stock Bank (VIB). She registered to buy 2.4 million VIB shares from October 14th to November 12th 2020 to increase the ownership rate at the bank. Dieu Linh is currently not a shareholder of VIB.

If the transaction is successfully completed, Dieu Linh will hold 2.4 million VIB shares, accounting for 0.18 percent of VIB’s stake. Meanwhile, Hoang Linh is holding 132,925 VIB shares, equivalent to an ownership of 0.01%.

Previously, the wife of Ho Van Long deputy general director of VIB also planned to purchase 3.2 million VIB shares from October 12th to November 10th 2020 with the aim to raise his ownership rate.

VIB has recorded spectacular growth recently when the bank’s information about the change of listing floor from the Hanoi Stock Exchange (HNX) to HCM City Stock Exchange (HoSE) in November 2020.

Specifically, on October 16th 2020, HoSE announced to approve the listing of more than 924 million VIB shares on the HoSE, equivalent to nearly 9.245 trillion dong.

In addition, VIB has recently released its financial statement in the third quarter (Q3) of 2020 with a pre-tax profit of 1.668 trillion dong, up by 30 percent over the Q2 revenue and by 52 percent compared to Q3 2019. In the first nine months of the year, VIB generated a total revenue of 7.854 trillion dong, up by 34%; while the pre-tax profit was 4.025 trillion dong, up by 38 percent over the same period of last year. VIB’s bad debt ratio decreased to below two percent, less than Q2 2020. In 2020, VIB set a plan to attain a pre-tax profit of 4.5 trillion dong.

In the market, VIB share price has risen by 97 percent compared to the beginning of the year, currently reaching 33,700 dong per share in the October 19th session. At this price, it is estimated that Le Dieu Linh will have to spend nearly 78 billion dong, while the wife of VIB’s deputy general director will have to spend more than 107 billion dong to buy the registered shares.

Making divestments

Contrary to the move that many bank leaders have strongly collected shares under bank’s listing wave, many other bank leaders, shareholders have looked for opportunities to sell out at high prices.

Specifically, Asia Commercial Joint Stock Bank (ACB) has reported the transaction results of First Burns Investments Limited (FBIL) and Asia Reach Investments Limited (ARIL).

Specifically, FBIL has finished selling 32.9 million ACB shares, lowering its ownership from 86.4 million shares (a rate of four percent) to 53.5 million shares (2.48%). The transactions were implemented from October 9th to October 12th 2020.

In the same period, ARIL has successfully sold 13.7 million shares of ACB, lowering its ownership from 68 million shares (3.15%) to 54.3 million shares (2.51%).

From October 9th to October 12th, ACB share price was traded around 23,200 dong to 23,800 dong per share. In particular, the October 9th session witnessed an unexpected transaction of ACB with nearly 40 million ACB shares were sold via put-through method at 24,000 dong per share.

According to ACB’s announcement, both of the two funds are directly related to Dominic Timothy Charles Scriven ACB’s members member of ACB’s Board of directors.

Another institutional shareholder of ACB also related to Dominic Timothy Charles Scriven is Dragon Financial Holdings Limited. The fund is also holding more than 110 million SCB shares, equivalent to an ownership rate of 6.92%.

Recently, the HoSE has announced to receive the listing documents of ACB. Accordingly, ACB expects to list more than 2.16 billion shares on the HoSE in the end of the year, equivalent to a market value at par value of 21,616 trillion dong.

After switching to the HoSE, ACB shares may be included in the baskets of indexes, such as VN30 (proportion of four percent), VNDiamond (10%), VNFIN Select (12%), etc. thereby increasing the market price of the stocks.

Closing the session on October 19th, ACB stood at 25,300 dong per share, up by 41 percent compared to early August.

 

Category: Finance, Vietnam

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