Nam A Bank to go public this year
Nam A Bank to go public this year
The Nam A Bank has announced its intention of listing on the stock exchange this year.
The listing is expected to help the bank's operations to become more explicit, raising liquidity for its shares, as well as create an opportunity for investment and increase dividends for shareholders.
To prepare for the listing, the State Bank of Viet Nam (SBV) allowed the Nam A Bank to restructure last year, expanding its network by opening eight branches and transaction offices in cities and provinces, including Da Nang, Lam Dong, Ninh Thuan, Binh Phuoc, Dong Nai, Ba Ria-Vung Tau, HCM City and Ben Tre.
The Nam A Bank has a charter capital of VND4 trillion (US$187.79 million). It earned a pre-tax profit of VND243 billion ($11.4 million) in 2014, 33 per cent higher than the year before.
If the plan turns into reality, Nam A bank will be the first bank in the domestic banking system to list on the stock exchange this year.
There are nine banks that are listed on the HCM City and Ha Noi stock exchange floors, including VCB, CTG, ACB, EIB, STB, SHB, MBB, BID and NVB. Most of them are big banks, which have reported satisfactory business results and good growth potential, which has attracted investors.
During the end of 2013, the State Securities Committee (SSC) and the SBV proposed to the Prime Minister to allow the listing of commercial banks on the stock exchange in order boost explicitness in the operations of credit institutions. They have also submitted to the Government an itinerary for the listing of banks in 2015, in which all banks were required to list on the stock exchange floors.
The Ministry of Finance recently emphad that it would coordinate with SBV to push commercial banks to list on the stock exchange this year. However, this seems to have come to a standstill due to the banks' sluggish restructuring, while the stock market also did not prove to be very favourable for the investors.
