BIDV delays share listing yet again
BIDV delays share listing yet again
Bank for Investment and Development of Viet Nam (BIDV) has missed its listing debut in the third quarter because it failed to set a share price.
This is the second time BIDV has missed listing, the first being in June when its debut price was expected to be 50 per cent higher than its initial public offering (IPO) price.
Share's in its IPO at the end of last year sold at VND18,583 (US$0.89) a share. However, analysts said the market was on a prolonged downtrend and that price would be hard to beat at present.
Of the eight listed banks on the two stock exchanges, only Vietcombank (VCB) and Sacombank (STB) are being traded at around VND20,000-24,000 ($0.96-1.15) a share.
According to market insiders, the prolonged bear market was one of the reasons for the delay by BIDV, particularly as investors were now wary of bank shares after scandals surrounding former executives of Asia Commercial Bank.
BIDV registered to list about 2.3 billion shares, representing its whole charter capital of more than VND23 trillion (US$1.1 billion), under the code of BID on the HCM City Stock Exchange.
It received the nod in May from the State Securities Commission.
Last Friday, the southern watchdog also approved the lender's listing application but said no official listing decision has been made and BIDV needed to "add some factors".
"The completion is mostly about the debut price," said Tran Thi Anh Dao, head of the exchange's Listing Management and Evaluation department, as quoted by the Saigon Economic Times.
"We will issue an official listing decision after the bank adds its debut price."
She said BIDV would decide the listing date but the shares must be traded on the bourse within 90 days of the official listing decision being issued.
Late last week, Moody's downgraded credit ratings of eight banks in Viet Nam, including BIDV, alongside the downgrade of Viet Nam's government bonds.
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