Mar 13, 2018 / 17:10

More banks to soon carry out listing in securities markets

Many banks have planned to submit listing plans to shareholders for approval in 2018 annual general meeting (AGM) season to capitalize on the advantageous conditions of the securities market.

At the AGM of the Vietnam Technological and Commercial Joint Stock Bank (Techcombank, code TCB) on March 3, the bank’s shareholders approved to authorize the board of directors to carry out necessary procedures for the completion of a plan to list TCB shares on the Ho Chi Minh Stock Exchange (HoSE) this year.
 
TPBank plans to list in the Ho Chi Minh Stock Exchange in 2018
TPBank plans to list in the Ho Chi Minh Stock Exchange in 2018
As Techcombank has not paid dividends for eight years despite making significant profits, its listing is considered attractively to its existing shareholders as well as new investors.
According to Techcombank’s chairman Ho Hung Anh, although the stock market grew sharply in 2017 and bank shares prospered, it was not the right time for TCB shares to get listed.
“However, 2018 is a good time for Techcombank’s listing. It is just a matter of time in order to offer best interests for shareholders and investors,” said Anh.
According to HoSE, it has so far also received the listing documents of Tien Phong Commercial Joint Stock Bank (TPBank, code TPB). The listing time is expected to be the end of the first quarter of 2018, after the bank completed the share issuance at a ratio of 15 percent to increase charter capital.
TPBank late last year signed a share purchasing contract worth US$40 million with PYN Fund Management, which is the third largest foreign fund in Vietnam, with a total portfolio value of 417 million euros. Accordingly, PYN Elite Fund will own 4.99 percent of TPBank stake after its issuance. 
Thus, if the listing is implemented on schedule, TPBank will be the second bank to list shares on the stock exchange in 2018. 
Earlier, in the first month of the year, HoSE recorded the participation of Ho Chi Minh City Development Commercial Joint Stock Bank (HDBank). 
In August last year, shares of Vietnam Prosperity Commercial Joint Stock Bank (VPBank) were officially listed on this stock exchange.
So far, there are over eight banks listed shares on the HoSE, including Vietcombank (VCB), VietinBank (CTG), BIDV (BID), Military Bank (MBB), VPB, HDB, Sacombank (STB) and Eximbank (EIB); and three banks listed shares on the Hanoi Stock Exchange (HNX), including Asia Commercial Bank (ACB), Saigon Hanoi Bank (SHB) and National Citizen Bank (NVB). 
On the Unlisted Public Company Market (UPCoM), there are four shares being traded, including Lien Viet Post Bank (LPB), Vietnam International Bank (VIB), Kien Long Bank (KLB), and Bac A Bank (BAB), in which LPB, VIB and KLB are planning to shift the listing on the official stock exchange.
The prices of bank stocks experienced spectacular growth in 2017, in which VPB was a typical case of early execution of listing plan. Therefore, not only banks that have traded on the UPCoM such as LPB, VIB, and KLB are planning to list on the official stock exchange, banks that have not yet traded shares on the UPCoM such as Techcombank, TPBank and OCB also want to get the shares listed on the official exchange.
According to financial expert Nguyen Van Thuan, the listing of some banks on the stock exchange without going through the UPCoM is a remarkable move. However, the time to list shares still depends on market conditions. Bank leaders also said that it is necessary to choose the appropriate listing time in order to improve the stock liquidity.
After the strong rise last year, the market uptrend for bank shares is forecast to continuously maintain this year thanks to the sector’s positive outlook, paying the way for banks to successfully list in the stock market, according to experts.