Several small banks eyeing major exchange listings

Several small banks eyeing major exchange listings

Several small lenders are planning to move their stock to major exchanges to bolster stock liquidity and replenish their capital sources.

Kienlong Bank is expected to present a plan to list its shares during its upcoming AGM on April 25.

According to the bank’s Board of Directors, listing KLB shares is a necessary move that reflects improved transparency in operations and enhances competitiveness.

Similarly, Viet A Commercial Joint Stock Bank (VietABank) will propose a plan at its AGM on April 26 to list all outstanding VAB shares when market conditions are favourable.

Photo: baodautu.vn

The bank will authorise its board to decide on the listing venue, either the Ho Chi Minh Stock Exchange (HSX) or Hanoi Stock Exchange (HNX), along with the timing, share price, and listing procedures.

Ban Viet Bank (BVBank) has also submitted a proposal for shareholder approval to list BVB shares on HSX within this year.

Saigon Bank for Industry and Trade (Saigonbank) is making similar moves, with chairman Vu Quang Lam confirming that the bank has met the financial requirements to list on HSX and has already signed a consulting agreement for the transfer.

These bank tickers are currently on the Unlisted Public Company Market, or UPCoM.

In addition to improving profit margins via exchange transfer, banks are also pushing to increase charter capital through share issuances plans.

Accordingly, BVBank aims to raise its charter capital from approximately $256 million to $307 million in 2025 through two methods. The bank plans to issue over 106.8 million shares to existing shareholders at a 6:1 ratio. These shares will be non-restricted in terms of transfer. The proceeds, worth more than $40 million, will be used to expand lending operations.

Additionally, BVBank plans to issue up to 20 million shares to its staff at a price of 44 US cents ($0.44) per share under its employee stock ownership plan (ESOP).

VietBank is also targeting a capital raise of approximately $151 million in 2025 through two phases.

In the first phase, the bank will issue over 107 million shares, equal to 15 per cent of current capital, to existing shareholders at a par value of $0.40 per share, expected in the second or the third quarters of this year. After this phase, VietBank's charter capital will reach approximately $328 million.

In the second phase, the bank plans to issue nearly 271 million shares, equivalent to 33 per cent of post-phase 1 capital, to shareholders, also at a par value of $0.40 per share.

This would raise more than $108 million, with implementation scheduled for the second half of 2025. Upon completion of both phases, VietBank's capital will grow from $285 million to nearly $437 million.

Meanwhile, VietABank will also propose an ambitious capital increase of 114.5 per cent at its AGM, raising its charter capital from $216 million to $463 million, through a three-part issuance plan.

Over 285 million shares will be issued to existing shareholders, equivalent to $114 million, bringing its total charter capital to $330 million. About 20 million shares valued at $8 million will be distributed under its ESOP scheme. This issuance will be implemented within 12 months of regulatory approval.

Finally, the bank will offer over 313 million shares to the public, raising an estimated $125 million. Upon completion, VietABank’s charter capital will reach $463 million.

Nguyen Huu Huan, senior lecturer at the University of Economics Ho Chi Minh City, commented that raising charter capital is a necessary condition for banks to improve their capital adequacy ratio and meet regulatory requirements, as well as strengthen competitiveness.

"At the same time, listing shares on major exchanges like the HSX and HNX will improve liquidity and help banks raise capital effectively through the market," said Huan.

VIR