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Vietnam: Nine banks planning to list on securities market in 2018
The Hanoitimes – The favorable market conditions are expected to pave the way for nine commercial banks to list on the country’s stock markets this year.
The banks are Techcombank, Maritime Bank, TP Bank, SeABank, OCB, ABBank, Saigonbank, Nam A Bank and Viet A Bank.
Techcombank and TPBank are likely to go on the Ho Chi Minh City Stock Exchange (HoSE) in the year’s first half, and OCB will follow them in the second half. Nam A bank, Maritime Bank, VietABank and SeABank plan to follow within the year.
According to a circular issued by the Ministry of Finance, 730 equitised enterprises, including 10 banks, should have traded their shares on the bourse last year. However, many banks have not made a move.
Though some among these banks have presented to their shareholders plans to trade shares on UPCoM in recent years, most have produced slow progress.
In April, shareholders of many banks approved plans to list on the bourse. However, to date, only four of them have fulfilled the plans.
VIB Bank has listed 564 million shares on UPCoMon January 9, but plans to shift to HoSE next year. Kien Long Bank listed 300 million shares on the UPCoM platform on June 29.
VP Bank debuted on HoSE on August 17 and LienVietPost Bank entered UPCoM on October 5.
Most recently, HoSE confirmed it has received an application for listing shares from HD Bank. The bank is negotiating with foreign investors on the plan to raise $300 million for a 20% stake before the official listing.
As for other banks, the dates for listing are unknown.
Ho Hung Anh, chairman of Techcombank, said at the 2017 annual shareholders’ meeting that the bank’s listing plan has been submitted to the State Bank of Vietnam, affirming that the bank would list shares immediately after receiving approval.
All Techcombank shares have been deposited at Vietnam Securities Depository since late 2016. However, the listing of the bank has been delayed multiple times.
AB Bank is also awaiting approval from the State Securities Commission, while OCB has decided that it would list shares on HoSE in 2018.
Nam A Bank and Maritime Bank failed to list their shares this year. At its shareholders’ meeting, only 3% approved Maritime Bank’s listing on UPCoM.
Viet A Bank and SeABank are also likely to put shares into transactions on UPCoM, while TP Bank decided that its shares would be available on HoSE.
According to experts, going public gives investors more options, facilitates banks’ capital mobilization, improves transparency, and promotes a healthy banking system and integration into international financial markets.
However, they said, when listing shares, banks will also have to observe rules on information exposure. This means that figures about business performance and bad debts will have to be made public. This stipulation has caused several banks to balk from listing.
State Securities Commission has recently slapped a fine on VietBank for its tardiness in submitting the listing application in accordance with Decree 108/2013/ND-CP dated September 23, 2013.
Under Decree 145/2016/ND-CP amending Decree 108/2013/ND-CP, public companies are subject to VND30-50 million fines if their listing applications are over 12 months behind schedule.
In case of the listing is 24-36 months late, the fine ranges from VND50 million to VND70 million. If listing plan is delayed for more than 36 months, the company may be subject to a fine of VND70-100 million.
A heavy fine of up to VND400 million may be issued on those not registering for listing and bourse trading or getting listed 12 months or more behind schedule.
According to a circular issued by the Ministry of Finance, 730 equitised enterprises, including 10 banks, should have traded their shares on the bourse last year. However, many banks have not made a move.
Though some among these banks have presented to their shareholders plans to trade shares on UPCoM in recent years, most have produced slow progress.
In April, shareholders of many banks approved plans to list on the bourse. However, to date, only four of them have fulfilled the plans.
VIB Bank has listed 564 million shares on UPCoMon January 9, but plans to shift to HoSE next year. Kien Long Bank listed 300 million shares on the UPCoM platform on June 29.
VP Bank debuted on HoSE on August 17 and LienVietPost Bank entered UPCoM on October 5.
Most recently, HoSE confirmed it has received an application for listing shares from HD Bank. The bank is negotiating with foreign investors on the plan to raise $300 million for a 20% stake before the official listing.
As for other banks, the dates for listing are unknown.
Ho Hung Anh, chairman of Techcombank, said at the 2017 annual shareholders’ meeting that the bank’s listing plan has been submitted to the State Bank of Vietnam, affirming that the bank would list shares immediately after receiving approval.
All Techcombank shares have been deposited at Vietnam Securities Depository since late 2016. However, the listing of the bank has been delayed multiple times.
AB Bank is also awaiting approval from the State Securities Commission, while OCB has decided that it would list shares on HoSE in 2018.
Nam A Bank and Maritime Bank failed to list their shares this year. At its shareholders’ meeting, only 3% approved Maritime Bank’s listing on UPCoM.
Viet A Bank and SeABank are also likely to put shares into transactions on UPCoM, while TP Bank decided that its shares would be available on HoSE.
According to experts, going public gives investors more options, facilitates banks’ capital mobilization, improves transparency, and promotes a healthy banking system and integration into international financial markets.
However, they said, when listing shares, banks will also have to observe rules on information exposure. This means that figures about business performance and bad debts will have to be made public. This stipulation has caused several banks to balk from listing.
State Securities Commission has recently slapped a fine on VietBank for its tardiness in submitting the listing application in accordance with Decree 108/2013/ND-CP dated September 23, 2013.
Under Decree 145/2016/ND-CP amending Decree 108/2013/ND-CP, public companies are subject to VND30-50 million fines if their listing applications are over 12 months behind schedule.
In case of the listing is 24-36 months late, the fine ranges from VND50 million to VND70 million. If listing plan is delayed for more than 36 months, the company may be subject to a fine of VND70-100 million.
A heavy fine of up to VND400 million may be issued on those not registering for listing and bourse trading or getting listed 12 months or more behind schedule.
Source: http://www.hanoitimes.vn/economy/2018/02/81E0C179/nine-banks-planning-to-list-on-securities-market-in-2018/