Vietcombank to sell 35 pct stake ahead of IPO
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HANOI, Sept 28 (Reuters) - Vietcombank, Vietnam's third largest lender, will sell shares totalling 35 percent of the company to a mixture of foreign and domestic investors, the government said on Friday.
Up to 20 percent of its total charter capital of 15 trillion dong ($928 million) would be sold to no more than two foreign strategic partners, who will be named -- along with IPO prices -- next month, the government said in a directive. It did not give specific dates.
It said the bank, which has total assets of about $11.3 billion at the end of June, would also sell a 6.5 percent stake to retail investors, a 3.5 percent stake to employees and 5 percent to domestic strategic partners.
"The criteria for the foreign strategic investors is that they must have international or regional financial capacity and successful investment experience in the region," Deputy Prime Minister Nguyen Sinh Hung said in the directive.
"In phase 2, the bank will issue shares and carry out international flotation with the total shares floated not exceeding 15 percent of the total charter capital," Hung added.
It is unclear when the auction would take place but Hung asked Vietcombank to select foreign strategic investors before auctioning its shares to retail investors.
The state will maintain dominant stake of no less than 51 percent in the state-run bank, which handles about a quarter of Vietnam's trade payments, Hung said.
The bank is one of four state-run banks earmarked for partial privatisation in 2007. Only two banks, both private, have been listed so far on Vietnam's two fledgling stock markets. Financial analysts said they expected the bank listings to further boost the development of capital markets in the communist-ruled country.
Foreigner investing have been piling into Vietnam's banking sector, which is seen as proxy for more than 8 percent annual GDP growth.
Credit Suisse (CSGN.VX) is advising Vietcombank on the privatisation process.
Vietcombank has a 'BB/B' counterparty credit rating assigned by Standard & Poor's in February, with a stable outlook.
($1=16,164 dong)
((Reporting by Nguyen Nhat Lam; editing by Lincoln Feast; Reuters Messaging: nhatlam.nguyen.reuters.com@reuters.net; +84 4 825 9623)) Keywords: VIETNAM VIETCOMBANK
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