Smaller banks race to raise capital, shift listings to HoSE

Smaller banks race to raise capital, shift listings to HoSE

Several banks currently trading on the UPCoM market are actively pursuing plans to both raise charter capital and shift their listings to the HoSE, the country’s main bourse known for stricter listing requirements and higher liquidity.

Customers conduct transactions at a National Citizen Bank office. — Photo courtesy of NCB

A growing number of small- and mid-sized banks in Việt Nam are accelerating capital increases while preparing to shift their listings from the UPCoM market to the Hochiminh Stock Exchange (HoSE) as they seek to strengthen financial capacity and meet higher market standards.

At National Citizen Commercial Joint Stock Bank, shareholders recently approved a plan to raise charter capital to nearly VNĐ29.28 trillion (US$1.1 billion), three years ahead of its original roadmap.

The bank intends to issue one billion shares to professional investors at VNĐ10,000 per share, with proceeds earmarked to expand lending for businesses and individuals during 2026-27.

Similarly, Vietbank has outlined a multi-phase plan to increase its charter capital from VNĐ10.77 trillion to VNĐ15.55 trillion.

The first phase involves issuing more than 107 million shares from equity sources, funded by retained earnings and reserve funds, with implementation expected in the second and third quarters of 2026.

In the second phase, the bank plans to issue an additional 296.14 million shares to existing shareholders at a price of VNĐ10,000 per share. These shares will not be subject to transfer restrictions and are expected to be issued in the third to fourth quarters of 2026.

For the third phase, Vietbank plans to issue more than 74 million shares under an Employee Stock Ownership Plan (ESOP) at a price of VNĐ10,000 per share. ESOP shares will be subject to a one-year lock-up period from the end of the issuance, with implementation expected from the fourth quarter of 2026 to the first quarter of 2027.

Similarly, VietABank targets a 55 per cent capital increase in 2026, raising its charter capital from VNĐ8.16 trillion to VNĐ12.69 trillion through three plans, to be submitted to shareholders on April 25.

The bank plans to issue 122.5 million shares from equity capital, 20 million ESOP shares with a one-year lock-up and 310 million shares to existing shareholders, all priced at VNĐ10,000 per share, with a total expected value of around VNĐ4.5 trillion.

At BVBank, the lender is continuing a previously approved capital-raising plan through a rights issue of more than 320 million shares at a ratio of 2:1, alongside an ESOP. If fully executed, BVBank's charter capital would increase by 55 per cent to nearly VNĐ9.9 trillion.

Beyond capital expansion, the push to move listings to HoSE has become a parallel priority.

BVBank is among the institutions planning to transfer its shares from UPCoM to HoSE, a move previously approved by shareholders but delayed due to market conditions and procedural factors.

Meanwhile, ABBank is expected to present plans at its upcoming annual general meeting to both increase capital and list its shares on HoSE, with the target of raising charter capital to more than VNĐ20.24 trillion.

A favourable factor for smaller banks is Decision No. 2070/QĐ-TTg dated September 16, 2025, issued by the Prime Minister, which removes several requirements on profitability and non-performing loans when considering the approval of stock listings for credit institutions.

Accordingly, banks are no longer required to be profitable for two consecutive years, maintain a non-performing loan ratio below 3 per cent for two consecutive quarters or fully meet the prescribed structure of the board of directors and supervisory board in order to be listed.

The domestic banking market currently has 22 listed banks, with five others trading on UPCoM, including Saigonbank, Vietbank, PGBank, BVBank and ABBank.

Beyond capital increases, unlisted banks still have room for foreign ownership. Once listed on HoSE, they could enhance access to capital flows, particularly from investment funds, which tend to favour HoSE-listed stocks. Some funds are even restricted to investing only on this exchange.

VIS Ratings noted that listing migration would help banks strengthen capital mobilisation, improve risk-absorption buffers and support credit growth targets. 

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