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BIDV Insurance Company prepares initial public offering for June
BIDV Insurance Company will make an initial public offering (IPO) in June and expects to list shares before the end of the year, according to the company's Deputy Director, Ton Lam Tung.
Tung said the insurer would gauge potential market response and map out the IPO as part of the overall equitisation plan of its parent company, the Bank for Investment and Development of Viet Nam.
"We are carrying out steps to appraise the company's value, a process we expect to complete in May at the latest," he said.
The company was also seeking a foreign strategic partner, focusing on internationally prestigious corporations specialising in insurance or reinsurance.
"However, BIDV, the parent bank, plans to retain 75 percent of the company's shares and offer 25 percent to the public."
BIDV Insurance was currently the only wholly State-owned insurance company. It has also been a pioneer in establishing a foothold in foreign markets, particularly in Laos and Cambodia. Following the IPO, it would be the fifth insurance company listed on the stock market, joing Bao Viet Holdings (BVH), Bao Minh Insurance Corp (BMI), PetroVietnam Insurance Corp (PVI), and Vietnam National Reinsurance Corp (VNR).
BIDV Insurance specialises in non-life insurance, reinsurance and financial services and earned nearly VND549 billion (US$29.2 million) last year, a year-on-year increase of 50 percent. Earnings from the insurance business made up more than 73 per cent of the total.
The company posted a profit of VND81 billion ($4.3 million) in 2009, exceeding targets and the highest profit the company had seen since its inception.
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