Techcombank earns over $370m from treasury share sale

Techcombank raised $922 million via an IPO last month, has announced that it has completed the sale of 64.4 million treasury shares to investors, equivalent to 5.58 per cent of charter capital.

Vietnam Technological and Commercial Joint Stock Bank (Techcombank) told local media that the second treasury share sale was conducted between April 27 and May 7 through the State Securities Committee. At an average transaction price of VND 128,000 ($5.6) apiece, Techcombank is said to have earned VND8.43 trillion ($370.9 million) from the sale of treasury shares. DealStreetAsia.com reported

The Hanoi-based bank had earlier completed the first sale of 93.2 million treasury shares at the average price of VND91,000 ($4) to investors, following its plan to sell over 158 million treasury shares to investors announced by chairman Ho Hung Anh at the firm’s annual shareholders’ meeting on March 3.

Warburg-backed Techcombank had successfully sold more than 164 million shares, equivalent to 14 per cent of its charter capital, to institutional investors via its IPO. At the final price of VND128,000 ($5.62) per share, the bank mopped up VND21 trillion ($922 million) and was valued at $6.5 billion.

At this valuation, Techcombank’s market capitalization is even greater than that of The Bank for Investment and Development of Vietnam (BIDV) and Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), whose charter capital is three times higher in comparison.

Techcombank’s IPO had attracted many foreign investors, including Singapore’s GIC, Dragon Capital and Fidelity Management.

Global private equity major Warburg Pincus had in March agreed to invest over $370 million in the bank, marking the largest ever PE investment in Vietnam to date. The transaction brought Warburg’s total commitment in the country to over $1 billion.

The 25-year-old Vietnamese bank provides a broad range of banking products and services to more than 5.4 million customers in the country. It is poised to commence trading on the Ho Chi Minh City Stock Exchange (HoSE) on June 4.

By Quynh Nguyen