Bank to list on April 19, with shares starting at VND32,000 ($1.4).
There will be 555 million TPBank shares listed on the Ho Chi Minh Stock Exchange (HSX) on April 19 at a starting price of VND32,000 ($1.4) per share, according to an official announcement from the bank at a roadshow on April 12 in Hanoi.
The starting price of VND32,000 puts TPBank’s market capitalisation at VND17.76 trillion ($779.29 million), making it the eighth-largest listed company on the country’s stock market.
“TPBank plans to pay dividends to shareholders in 2018 from profits in 2017 at a rate of over 8 per cent,” deputy Chair Do Anh Tu told the roadshow. “It is also completing a sale of 15 per cent of shares to domestic and foreign investors through the issuance of individual shares and will distribute bonus shares to shareholders at a rate of 20 per cent, from the surplus in this issue.”
He emphasized that it’s high time for the bank to list on HNX because Vietnam’s stock market in general is positive and bank stocks are leading the market. There are many foreign investors interested in picking up TPBank shares, he added.
TPBank was established in 2008 as Tienphong Bank. In 2012, Do Minh Phu and his brothers bought back nearly 20 per cent when the bank increased its capital under a restructuring plan approved by the prime minister and the State Bank of Vietnam (SBV). Thanks to Phu’s leadership and that of the Board of directors and Board of Management, by mid-2015 the bank had recovered from its accumulated losses and had become a successful concern.
The International Finance Corporation (IFC) became a shareholder in TPBank in 2016, with a 4.99 per cent holding. The PYN Elite Fund also outlaid nearly $40 million on securing a stake of 4.99 per cent.
With the aim of becoming the leading bank in Vietnam, TPBank has invested strongly in technology and continually launched new products and services, such as TPBank eBank, eBank Biz, and TPBank QuickPay. It was the first bank in Vietnam to successfully introduce a 24/7 automated banking modelTPBank LiveBank and has received positive feedback from users. The bank had nearly 60 LiveBank points nationwide as of March 31. The TPBank QuickPay app, for conducting money transfers via QR codes, has also brought many benefits to customers of all ages.
TPBank’s business has been growing and recording positive results over the last three years. The bank was the strongest in Vietnam during the 2014-2017 period based on growth rate, asset quality, capital size, and position according to rankings from international credit rating agencies. Total assets grew significantly, by nearly 63 per cent.
The morning session closed, TPB is the only bank increased in term of share price.
Banks’ stock price on April 19, 2018
This was first published on Vietnam Economic Times