VPBank Securities, a brokerage owned by Vietnam Prosperity Bank, expects its initial public offering to be oversubscribed, the company’s chief executive said on Thursday, citing strong interest from institutional investors.
The firm is targeting 12.7 trillion dong ($481 million) in what is anticipated to be Vietnam’s largest IPO this year.
Institutional investors have subscribed to shares worth around 6 trillion dong ($227.82 million),” Vu Huu Dien, CEO of VPBank Securities told Reuters on the sidelines of the IPO Roadshow event.
Dien named Dragon Capital, a prominent Vietnamese asset manager, and domestic brokerage VIX Securities among the notable participants, adding that more than 50 international investors have expressed interest.
The offering, which runs from October 10 to October 31, includes 375 million shares priced at 33,900 dong each. A listing on the Ho Chi Minh City Stock Exchange is planned for December, according to Dien.
Vietnam’s IPO market has gained momentum, driven by a share rally, regulatory changes, increased credit activity, and an upgrade to emerging market status by index provider FTSE Russell, despite ongoing net selling by foreign investors.
Last month, Techcom Securities raised $410 million in its IPO, achieving a valuation of $4 billion. Meanwhile, VPS, Vietnam’s largest brokerage by market share, is also pursuing an IPO.
Reuters
