Techcombank places over 164m ordinary shares to investors
Techcombank places over 164m ordinary shares to investors
Viet Nam Technological and Commercial Joint Stock Bank (Techcombank) raised about VND21 trillion ($922 million) in its initial public offering (IPO) on Friday.
All of more than 164 million ordinary shares were successfully sold to institutional investors at the final price of VND128,000 (US$5.62) per share, which valued the bank at $6.5 billion. The book was significantly oversubscribed at the time of pricing.
The trading of Techcombank’s shares on the HCM Stock Exchange is expected to commence on June 4 under the stock code TCB.
“We are thrilled with the positive response from the international investment community. Our decision to allocate a large portion of our offering to the cornerstone investors is a testament to the tremendous demand from a diverse and high quality set of investors. Just as important is that a number of these funds are investing in Viet Nam for the first time, ” Nguyen Le Quoc Anh, CEO of Techcombank, said.
He said they believed investors were attracted to the strength of Techcombank’s business model along with the broad background and experience of its management team. But most importantly, investors are very bullish on the growth of Viet Nam’s middle class as its young population enters the work force. Finally, the country’s slow financial inclusion rate makes banking a very attractive proposition.
Morgan Stanley, Viet Capital Securities JSC and Deutsche Bank AG are arranging the offering.
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