Previously, only large banks wanted to list their shares on the stock market, but now small banks are also joining the race. It is expected that some 10 banks will list on the bourse in the time to come.
Western Joint Stock Bank on November 18 said that it had got the approval from the Governor of the State Bank of Vietnam to list shares at the HCM City Stock Exchange (HOSE). The bank said it is trying to speed up procedures so as to be able to list in the first quarter of 2010.
Western Bank’s forerunner was Co Do Bank which was established in late 1988 in Can Tho City as a rural bank. It has become an urban bank since early 2007. Chartered capital was raised to one trillion dong in early 2008. The bank, which now has a wide network of 60 branches, is planning to increase the chartered capital to two trillion dong, if it gets the approval from the State Bank of Vietnam.
Prior to that, the Governor of the State Bank of Vietnam approved the proposal by Nam Viet Bank (NaviBank) to list shares at the Hanoi Stock Exchange (HNX).
The plan to list shares at HOSE of Orient Bank was approved by the bank’s shareholders’ extraordinary meeting on December 11 which is expected to be completed in 2010.
Tran Van Vinh, General Director of Orient Bank said that the chartered capital of the bank is expected to increase to two trillion dong by the end of this month and to three trillion dong by the next year.
Dai A Bank has just cancelled the plan to put shares into transactions on UpCom (The market of unlisted public companies) in order to list shares on the official bourse, slated for 2010.
After two years’ delay, DongA Bank has also announced it will list shares on the HOSE in 2010, when conditions are favourable.
Military Bank, Maritime Bank and MX Bank (Which has been renamed Mekong Bank) are also building up the plans to list shares on the official bourses. The bankers said the plan will be submitted to the upcoming shareholders’ meetings.
Analysts say that small banks are rushing to list shares on the bourse because they want to attract investors which can help them complete the issue of shares to increase chartered capital to three trillion dong before the 2010 fiscal year ends.
Under the current regulations, commercial banks must have a minimum chartered capital of three trillion dong by the end of 2010.
The analysts, while believing that the listing of banks will help diversify the ‘commodities’ of the stock market, have warned that oversupply may occur. Previously, some unlisted banks issued shares at a price of 10,000 dong per share, but they could not attract investors.
Six banks now have their shares listed on two official bourses.