Shares of VPBank Securities, the brokerage arm of Vietnam Prosperity Bank, fell in their trading debut on Thursday following the company’s $482 million initial public offering, Vietnam’s largest in at least three years.
The stock fell 4.7% to 32,300 dong ($1.23) a share at 0223 GMT, lower than its offering price of 33,900 dong.
Its current market capitalisation stands at 61.8 trillion dong ($2.35 billion), down from $2.4 billion after the IPO.
Vietnam’s benchmark index, one of Southeast Asia’s top performers with a 34.6% gain year-to-date, has lost momentum and slipped 1.71% over the past week. The index was slightly lower on Thursday morning.
Vietnam’s IPO market has recently gained momentum, supported by a stock rally, regulatory reforms, increased credit activity and the country’s upgrade to emerging market status by index provider FTSE Russell, in spite of persistent net selling by foreign investors.
Earlier this year, Techcom Securities raised $410 million with an IPO, achieving a valuation of $4 billion. In addition, VPS, the country’s largest brokerage by market share, is also pursuing an IPO.
Analysts say the IPO wave among securities firms is driven by their need to raise capital to meet new regulatory requirements and expand their margin lending operations.
Reuters
