The small bank sprinted to UPCoM before G hour

6 min read

Tie to the floor

In the project “Restructuring the stock market and insurance market to 2020 and an orientation to 2025” approved by the Prime Minister at the end of February 2019, a series of solutions to restructure the market are proposed. In particular, the compulsory listing of commercial banks is one of the measures to diversify commodity bases on the market.

Specifically, the project requires all commercial banks to list shares on the HoSE and HNX and register for transactions on UPCoM towards the end of 2020.

In fact, the requirement to “go public” for banking stocks was set out earlier in the development strategy of the Vietnam banking industry to 2025, with a vision to 2030, approved by the Prime Minister in August 2018. . At the same time, according to Circular 180/2015 of the Ministry of Finance, banks are required to put shares registered for trading on UPCoM by the end of 2016.

The State Bank and the State Securities Commission (SSC) have also repeatedly issued a letter to remind the policy and roadmap of all commercial banks to be listed on the stock exchange in previous years. Under the above pressure, small and medium-sized banks have quickly completed the procedures to put stocks on UPCoM.

Recently, Saigonbank and Nam A Bank are the most mentioned names as they will be banks that register to trade shares on UPCoM in 2020 after Ban Viet Bank (BVB).

Out of 308 million SGB shares of Saigonbank, which have just been approved by HNX to register for transaction on UPCoM, more than 201 million shares are restricted to be transferred by law.

In which, members of the Board of Directors of Saigonbank hold nearly 151 million shares, equivalent to 48.9% of the charter capital and nearly 50.4 million shares, equivalent to 16.35% of the capital owned by the Tourism and Trade Company Limited. Ky Hoa owns.

Besides, the Vietnam Securities Depository (VSD) said that Nam A Bank registered to trade NAB shares on the UPCoM market. Accordingly, more than 389 million shares of Nam A Bank have been deposited at the VSD, with the stock code as NAB. The value of registered securities is equivalent to more than VND 3,890 billion.

At the same time, VSD also announced that the maximum foreign ownership rate of the securities code NAB is 30% of the charter capital. Currently, the biggest shareholder of the bank is Dragon Thai Binh Duong Company Limited with a ownership rate of nearly 11% and no major foreign shareholder.

Previously, a number of banks also posted shares to be traded on UPCoM such as BacA Bank (stock code BAB), Kienlongbank (stock code KLB), VietBank (stock code VBB) on UPCoM in the third quarter of 2019 and The most recent is Ban Viet Bank (stock code BVB) officially traded on July 9, 2020.

However, there are still a number of banks in the financial market that have not had any actions on the listing plan such as BaoViet Bank, VietA Bank, even though VietA Bank has repeatedly mentioned the plan to be listed on the exchange before annual congress.

Besides, PGBank is in the process of merging with HDBank. In addition, 3 weak banks including: CBBank, Oceabank and GPBank as well as DongA Bank are under special control, so it is difficult to bring shares to the exchange in the near future.

Capital is still thin

Saigonbank is the first joint stock bank established in the joint stock banking system in Vietnam since 1987 with an initial charter capital of VND 650 million.

In 2014, Saigonbank had a plan to increase its charter capital to VND 4,000 billion and in 2016, it was approved by the State Bank. However, so far this plan has not been implemented and the chartered capital of VND 3,080 billion has been maintained by Saigonbank from 2012 up to now.

It seems that Saigonbank is still standing still and has not made any move for its capital raising plan in the coming time when the recent 2020 annual shareholder meeting also did not see the plan to increase charter capital in the reports.

However, the capital adequacy ratio (CAR) of Saigonbank as of June 30, 2020 is 19.32%. Therefore, the bank has no problem maintaining the required CAR ratio.

However, judgments made, if it is not possible to raise capital to improve its financial capacity, it is difficult for Saigonbank to avoid the M&A wave in the coming time when the restructuring process is accelerated.

In addition to the context of not being able to raise capital, Saigonbank is also subject to continuous divestments from shareholders, in particular, in November 2017, Vietcombank auctioned 13.2 million SGB shares at the average successful auction price up to 20,100 VND / share; In March 2019, VietinBank auctioned to divest more than 15 million SGB shares, equivalent to 4.91% and collected more than VND 305 billion.

Recently, in early 2020, Bien Hoa Electronics Joint Stock Company (Belco) registered to auction all of nearly 1.5 million SGB shares, equivalent to 0.49% of capital.

VietA Bank has not been able to raise capital for many years, but recently, the State Bank has approved for this bank to increase its capital from VND 3,500 billion to VND 5,000 billion.

As for Ban Viet Bank (BVB), after many years of not raising capital, on August 26, this bank conducted an extraordinary shareholder meeting to submit to shareholders to approve a plan to increase charter capital to over 4,000 billion VND. .

Accordingly, Ban Viet Bank will be divided into 2 phases. Phase 1 will issue more than 35.2 million shares to existing shareholders at the rate of 9% and issue 15 million ESOP shares; Phase 2 will issue 40.4 million shares to existing shareholders at the expected rate of 11%.

Thereby, the bank’s charter capital is expected to reach more than VND 4,077 billion. Implementation period in 2020 and quarter I / 2021.

Many banks still have foreign rooms left

Currently, BVB has not had foreign shareholders participating and foreign room remains 30%. As of December 31, 2019, BVB’s shareholder structure has only one major shareholder owning more than 5%, Saigon New Urban Area Investment Joint Stock Company, which holds 12.89% of the charter capital of the business. .

Meanwhile, the total management board holds 51,547,663 shares, equivalent to 16.26% stake in the business. At Saigonbank, as of May 29, 2020, the bank’s largest shareholder is the City Party Committee Office. HCM holds 18.18% of the capital.

Next is Phu Nhuan Construction and Housing Company Limited, holding 16.64%; Ky Hoa Tourism and Trading Company Limited holds 16.35%; City Petroleum Company Limited. HCM (Saigon Petro) owns 14.08%. These four units are holding 65.25% capital of Saigonbank.

As of May 31, 2020, the ownership rate of foreign investors in Saigonbank was 4.997% of the charter capital, equivalent to nearly 15.4 million shares. Thus, the foreign room at Saigonbank is still very large.

Currently, the foreign room for foreign investors at Nam A Bank remains 30%. Nam A Bank also had many negotiations with partners to soon successfully mobilize capital before bringing shares to trading on the TP stock exchange. HCM (HoSE).

It is known that in the plan to increase capital from VND 5,000 billion to VND 7,000 billion this year, Nam A Bank said that there will be more capital from foreign investors.

Currently, 19 banks have been listed and registered for stock trading on Vietnam’s stock market.

In which, Vietcombank, BIDV, VietinBank, VPBank, HDBank, Eximbank, MBBank, Sacombank, TPBank, Techcombank were listed on HoSE; ACB, SHB, NCB are listed on the HNX; while VIB, Kienlongbank, LienVietPostBank, BacA Bank, VietBank, and Viet Capital Bank are transacted on UPCoM.

According to the plan by the end of this year, VIB and LienvietpostBank will be listed on the HoSE. Currently, HoSE has approved the listing documents of VIB and Lienvietpost Bank. Next to ACB, SHB also plans to switch from HNX to HoSE by the end of this year.

Meanwhile, OCB wants to ignore UPCoM to list on HoSE, but due to unfavorable market conditions, the bank has not been listed and it is likely that this plan will be difficult to implement later this year.

Or at MSB, earlier this year, it had withdrawn its listing on HoSE due to unfavorable market conditions in the context of the Covid-19 pandemic.

Source: – Translated by