Banks’ listing plans standstill

25-Apr-2019 Intellasia | VnEconomy | 6:18 AM Print This Post

Year 2018 was expected to be a year for listing shares of commercial joint stock banks. However, only three banks were successful, including Vietnam Technological and Commercial Joint Stock Bank (Techcombank), HCM City Development Commercial Joint Stock Bank (HDBank) and Tien Phong Commercial Joint Stock Bank (TPBank). Banks continue to include share listing in their targets this year, although the completion time remains unknown.

The 2019 Annual general Meeting (AGM) of Orient Commercial Joint Stock Bank (OCB) on April 27th will continue to gather comments of shareholders about listing OCB shares on the HCM City Stock Exchange (HOSE). This content is no longer new as it has been presented to shareholders since 2016 and remains uncompleted. OCB’s Board of directors (BOD) said that since the capital mobilisation and trading of bank stocks have been unfavourable from the second quarter 2018, the listing of OCB shares could not be implemented in the year.

In 2019, OCB aims to expand total assets by 20 percent to 120 trillion dong, increase charter capital by 38 percent (to 9.083 trillion dong) and mobilisation by 21 percent, and grow pre-tax profit by 45 percent to 3.2 trillion dong. With this plan, OCB’s charter capital will be raised by 2.484 trillion dong this year by issuing shares for dividend payment (at a ratio of 20 percent) and conducting private placement to investors.

For An Binh Commercial Joint Stock Bank (ABBank), the listing of shares is not clearly presented to shareholders, but the listing procedures of the bank is still stuck at the plan of issuing shares for distributing dividends.

Specifically, ABBank has submitted the application of share issuance to pay dividends for raising charter capital to the State Bank of Vietnam (SBV) but the bank has to re-apply the file due to changes in the capital increase documents. The bank is now waiting for approval from the operator.

Previously, the bank planned to issue nearly 39.4 million shares to pay dividends, equivalent to a ratio of 7.4 percent, the undistributed earnings retained for this share issuance is worth over 393 billion dong.

ABBank’s BOD said that immediately after completing the share issuance for dividend distribution, ABBank will finalise the list of shareholders to deposit shares at the Vietnam Securities Depository (VSD) and submit the listing document to the HOSE.

Southeast Asia Commercial Joint Stock Bank (SeABank) has met and approved the listing roadmap. In 2018, SeABank also failed to list shares due to the issuance of shares for capital increasing in the end of the year. The registration and depository documents of VSD currently need to be amended and supplemented.

In accordance with the orientation and development strategy of the bank in 2018-2020 period and to carry out the policy of the prime minister in the Scheme to restructure the stock market and insurance market to 2020 and orientation to 2025, SeABank’s BOD submitted shareholders and has received approval for the plan to list shares on the HOSE instead of the Unlisted Public Company Market (UPCoM) as filed in 2018. During the time when SeABank’s shares are not listed on the HOSE, the bank’s BID may consider trading shares on the UPCoM if necessary.

Some other banks also target to listing stocks on the stock exchanges such as Nam A Commercial Joint Stock Bank (NamABank), Maritime Commercial Joint Stock Bank (MaritimeBank), Vietnam Thuong Tin Commercial Joint Stock Bank (VietBank), etc. Some banks which have registered for trading on the UPCoM also submit the plan to list on the HOSE such as Lien Viet Post Commercial Joint Stock Bank (LPB), Vietnam International Commercial Joint Stock Bank (VIB), etc. Nevertheless, the implementation time is still left open by these banks.

Many banks have even not mentioned about this topic, such as Bao Viet Commercial Joint Stock Bank (BaoVietBank), Vietnam Public Commercial Joint Stock Bank (PVcomBank), Viet Capital Commercial Joint Stock Bank (VietCapitalBank), etc.

Currently, only 17 bank stocks are listed and registered for trading on the UPCoM out of more than 30 commercial joint stock banks. Under the scheme to restructure stock market and insurance market to 2020 and orientation to 2025, by the end of 2020, commercial joint stock banks must list and register for share trading on the official market (UPCoM).


Category: Finance, Vietnam

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