Vietnam’s largest initial public offering in 2011 saw the country’s second-largest lender by assets – the Bank for Investment and Development of Vietnam (BIDV) – raise 1.575 trillion Vietnamese dong (USD75 million) during a December 28-29 auction. Trading in the company’s shares will begin this year.
The sale of three percent of its equity capital was part of the Vietnamese government’s plan to reduce its stake in the company from 100 percent to 65 percent by 2015. BIDV intends to sell a further 15 percent stake to foreign strategic investors in 2012 as well as 1 percent of preferential shares to the bank’s staff and 3 percent to its labour unions – to achieve a reduction in the government’s stake to 78 percent by end 2012.
A total of 16,109 individuals and 129 institutions placed bids for 140.875 million shares, more than the 84.754 million shares on offer. The shares were sold at an average price of 18,583 dong a share, above the 18,500 dong guidance price. Foreign investors bought a total of 125,215 shares, or 0.15 percent of the total sold.
Morgan Stanley acted as financial adviser to BIDV.
Vietnam's stock market was among the world’s worst performers in 2011 as the country has implemented measures to restrain high inflation. On December 23, China Development Bank (CDB) and BIDV agreed on a five-year USD200 million loan. In 2010, CDB made its first preferential loan to BIDV for USD100 million.
In October 2011, Vietcombank – or the Joint Stock Commercial Bank for Foreign Trade of Vietnam - agreed to sell a 15 percent interest to Japan’s Mizuho Financial Group for 11.8 trillion dong.
