Banks aim to boost efficiency through listings and capital hikes

Banks aim to boost efficiency through listings and capital hikes

Several Vietnamese banks are planning to switch stock exchanges and raise capital in 2025, aiming to improve transparency, liquidity, and market competitiveness.

The Ho Chi Minh Stock Exchange (HSX) received a listing application from VietABank for nearly 540 million shares on May 14. The bank, which currently has a charter capital of approximately $216 million, is trading on the Unlisted Public Company Market (UPCoM) under the ticker VAB.

"We expect to move our listing in the third quarter this year to boost stock transaction," said Phuong Thanh Long, chairman of the Board of Directors at VietABank, during the bank’s 2025 AGM in Hanoi on April 26.

Long said that the aim of the re-listing is to elevate the bank’s reputation and brand, while also facilitating stock transactions and attracting both domestic and foreign capital.

At its AGM on April 25 in Hanoi, KienlongBank (ticker KLB) authorised its board of directors to select an appropriate stock exchange for its upcoming listing, which is targeted for completion in the fourth quarter this year.

KienlongBank's board emphasised the importance of listing to demonstrate transparency, improve operational capacity and competitiveness, and contribute to the achievement of strategic objectives.

The bank had previously withdrawn its HSX listing application in 2023, citing unfavourable market conditions that could have impacted shareholder interests.

Similarly, at its AGM in Ba Ria-Vung Tau on April 24, BVBank approved a plan to list its shares (ticker BVB) on HSX this year, after delaying its move last year due to unpropitious market conditions.

VietBank also plans to list its shares (ticker VBB) on HSX once market conditions are favourable, according to documents released during its AGM in Ho Chi Minh City on April 26.

The bank’s prospectus notes that although VietBank has met the listing criteria, global trade tensions and US tariff policies have created high market volatility. The bank will therefore carefully assess the timing of the listing, targeting late 2025 or 2026 to maximise shareholder value.

In addition to switching trading platforms, several banks have announced plans to raise capital.

VietABank, for instance, will increase its charter capital from $216 million to $463 million, through three methods; issuing shares from retained earnings and capital reserve valued at $114 million; issuing shares under employee stock ownership plan (ESOP) worth $8 million; and offering new shares to existing shareholders worth $125 million.

Meanwhile, VietBank plans to boost its charter capital through two issuance rounds in 2025.

In the first round, it will issue 107.1 million shares, equal to 15 per cent of existing capital, worth $43 million to existing shareholders, set for the second or third quarter of this year.

In the second round, it will issue nearly 271 million shares, equal to 33 per cent of post-round-1 capital, valued at $108 million, scheduled for the third or fourth of this year. If both rounds are successful, VietBank’s charter capital will rise from $285.5 million to nearly $437 million.

BVBank aims to raise its charter capital from $256.3 million to $307 million this year through two methods; issuing over 106.8 million shares to existing shareholders at a 6:1 ratio, meaning one new share for every six held, adding more than $40 million to expand capital sources.

In addition, the bank intends to issue up to 20 million shares at $0.44 each as part of an Employee Stock Ownership Plan. These shares will be subject to a one-year lock-up period, with a maximum value of $8 million, also to boost lending sources.

BVBank intends to implement both capital-raising plans in 2025 or during the first half of 2026.

According to Nguyen Huu Huan, a financial expert and lecturer at the Ho Chi Minh City University of Economics, increasing charter capital is essential for banks to improve their capital adequacy ratio, aligning with international standards, and enhancing competitiveness.

"Listing shares will improve liquidity and enable banks to raise capital more efficiently on the stock market," said Huan

Currently, 20 bank stocks are listed on the HSX and Hanoi Stock Exchange, while UPCoM is host to seven bank stocks.

VIR