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Vietcombank unlikely to list on bourse this year
The question about when Vietcombank will list its shares on the bourse has, once again, been raised, as the timing of the event will have considerable impacts on the market.
Vietcombank’s Chairman Nguyen Hoa Binh last Friday said that Vietcombank is still facing troubles on the negotiating table. Vietcombank and its foreign strategic partners still cannot reach an agreement about price.
Vietcombank has resumed negotiations with foreign strategic partners. “Making investment in Vietcombank remains the optimum thing that foreign investors strive for,” a source from Vietcombank said.
IFC, the International Finance Corporation, last week also expressed its intention to become the strategic partner or normal shareholder of Vietcombank.
Under Decree 109, strategic investors have to buy stakes at prices not lower than the average IPO price. However, reasoning long-term ties with Vietcombank as strategic shareholders, the negotiating partners have offered prices far below the levels expected by Vietcombank.
The problem lies in the fact that if Vietcombank reduces sale prices, it would violate the current laws. Meanwhile, domestic investors will lose their confidence in Vietcombank’s shares, as they had to pay VND107,806/share at the IPO held in December 2007.
Problems in the management of the capital surplus from stake sales have also been mentioned. Vietcombank will have to transfer 70% of the capital surplus to the state. The bank can only retain VND3,200bil from the IPO, while having to say goodbye to the huge sum of VND7,500bil.
Regarding the ownership model, the state now still holds nearly 90% of Vietcombank’s shares. However, the bank officially shifted to operate as a joint-stock bank in May.
A lot of difficulties have explained why Vietcombank has to delay the listing plan, though the Prime Minister earlier this year released Dispatch No 489, asking Vietcombank to list in June, while the shareholders’ meeting decided that the listing would be completed within this year.
In a conversation with reporters late last week, Binh still said that Vietcombank is determined to list on the bourse this year, but declined to identify an exact date.
“I cannot say anything about the next steps of Vietcombank’s listing as the stake sale prices for strategic partners are not set,” Binh said.
Vietcombank’s shares are now hovering around VND50-60,000/share, representing a 50% decrease compared to the end of 2007.
VNN
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