HDBank to Raise as Much as $300 Million Selling 20 Percent Stake

  • Bank will list on the Ho Chi Minh City Exchange in early 2018
  • HDBank considers 15 percent stake sale to strategic partner

Ho Chi Minh City Housing Development Commercial Joint-Stock Bank expects to raise as much as $300 million by selling a 20 percent stake to foreign investors this year before listing on the Ho Chi Minh City Stock Exchange in early 2018.

HDBank, as the financial institution is commonly known, wants to expand its reach across a nation in which most people do not use banks, said Nguyen Thi Phuong Thao, vice chairwoman of the bank. The bank hired Goldman Sachs Group Inc. for the stake sale and trading.

“We will tap the 70 percent of the Vietnamese population that isn’t using banking services,” she said in an interview during the Asia-Pacific Economic Cooperation CEO summit in Danang. “We want to be Vietnam’s number one retail bank in the next five years.”

The bank is also considering selling an additional 15 percent stake to a foreign strategic investor, said Thao, who is the billionaire founder of VietJet Aviation Joint Stock Co. Potential strategic investors from Hong Kong, Japan and South Korea have expressed interest, she added.

HDBank expects pretax profit to reach 2.4 trillion dong ($106 million) this year and forecasts 2018 pretax profit to jump to 3.9 trillion dong, Thao said. HDBank aims to increase its total assets by 25 percent next year from about 180 trillion dong in 2017, she said. The bank expects revenue to grow as much as 27 percent in 2018.
The 20 percent shares will be sold to several foreign investors at no more than 5 percent each, Thao said.

The bank is trading at about 27,000 dong-28,000 dong a share on the country’s over-the-counter market, according to Hoang Thach Lan, head of the individual investor division at RongViet Securities Co.

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