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Giant insurer to list on HCM City exchange
Local giant insurer Bao Viet Holdings will list more than 573 million shares on the HCM City Stock Exchange on Thursday.
The shares, representing 100 per cent of the firm’s charter capital of VND5.73 trillion (US$321.9 million), would be coded BVH, and offered on the opening day at VND38,500 each, the group said.
On the opening day of trading, they would be allowed to fluctuate within a trading band of plus-or-minus 20 per cent, consistent with the Law on Securities.
The price was based on an evaluation of market conditions relative to the company’s profitability, Bao Viet Holdings chairman Le Quang Binh told reporters yesterday.
Bao Viet Holdings conducted an initial public offering on May 31, 2007. The group offered 59.44 million shares at an offer price of VND30,500 a piece. The average winning price was VND73,910.
A representative from Bao Viet’s foreign strategic partner HSBC Insurance, said the company agreed with the price assessment.
Investment in Bao Viet was long-term and had not been affected by the market movement, said head of HSBC Insurance’s representative office, Charles Gregory.
HSBC Insurance bought 10 per cent stakes from Bao Viet to become its strategic partner at VND70,000 a piece.
Chairman Binh told reporters that HSBC Insurance would increase its ownership in Bao Viet this year to 18 per cent.
"The extension with more than 8 per cent stakes is part of our co-operation deal. HSBC Insurance can increase ownership cap to 18 per cent in the beginning of the collaboration," Binh said.
"However, the cap extension would depend on many factors, not only the nod of two parties. We expect to finalise it this year," he said.
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