HDBank shares surge on market debut

HDBank listed around  九 八 一 million shares on the HCM City stock exchange on Jan  五.—Photo VNS

HCM CITY — Around  九 八 一 million shares of HDBank listed on the HCM City Stock Exchange on Thursday at VNĐ 三 三,000 (US$ 一. 四 六).

After the listing, HDBank, or HCM City Development Bank as it is formally known, has become one of the  二0 heavyweights on the southern bourse with a market capitalisation of $ 一. 四 三 billion.

Soon after opening, HDB soared  一 七 per cent to VNĐ 三 八, 六00, not too far from the daily ceiling of  二0 per cent.

It went on to hit the ceiling, closing at VNĐ 三 九, 六00.

The volume topped  三 二. 三 million shares, with foreign investors buying more than  五 million.

Earlier the bank had raised more than $ 三00 million by selling a  二 一. 五 per cent stake to foreign investors.

Foreigners can buy another  八. 五 per cent to reach the maximum permitted  三0 per cent whereas in many other listed banks the limit has already been reached.

HDBank is the first bank to go public in  二0 一 八 and the eighth lender to list on HoSE.

Fred Burke, managing partner of Baker McKenzie Law Firm -- the legal advisor to HDBank, which also advised the listing of budget airline Vietjet Air -- said: "Listing like this one really shows how far Việt Nam has come in terms of building its own capital market."

He told Việt Nam News that the airline has gained a lot of visibility globally and the bank also has some very strong selling points, which would attract investors.

"For example, its non-performing loans ratio is very small compared to other banks in Việt Nam."

Last year, the bank earned a pre-tax profit of VNĐ 二. 四 二 trillion, or  一 一0 per cent up from  二0 一 六.

Its non-performing loans ratio was  一. 一 per cent. — VNS