Gov’t okays Vietinbank’s equitisation plan

HCM CITY — The State-owned Viet Nam Bank for Industry and Trade (Vietinbank) is prohibited from spending over 20 per cent of its charter capital on its initial public offerings (IPO), according to the Government’s approval of the bank equitisation plan released on Tuesday.

Of the total, VietinBank was allowed to sell less than 5 per cent of its charter capital to public and local strategic partners, while foreign strategic partners are permitted to hold no more than 10 per cent.

The bank will also maintain the State’s stake of no less than 51 per cent of its charter capital, which is controlled by the State Capital Investment Corporation (SCIC).

Additionally, the bank is prohibited from choosing more than two foreign institutions as strategic partners.

“At present, we cannot say anything about the selection of strategic partners, or about other details relating to our IPO,” said VietinBank’s Chairman Pham Huy Hung.

However, the bank was in talks with over 10 overseas commercial banks for the selection, Hung said.

“Also, we are trying to complete the final procedures of equitisation, including the initial price offered to both local investors and foreign strategic partners, to have the Government’s permission in this fourth quarter,” he added.

VietinBank now has a charter capital of VND13.4 trillion (US$807.23 million). The bank has chosen JP Morgan as its equitisation consultant. —