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Techcombank to raise US$363 million selling treasury stocks
Ngoc Thuy 17:08, 2018/05/14
For an average price of VND128,000 (US$5.64) apiece, Techcombank has raised over VND8.24 trillion (US$363 million) from selling 64.4 million treasury stocks in round 2, announced the bank.
The amount of shares for sale is equivalent to Techcombank's 5.85% charter capital, which was put on offer from April 27 to May 7. 
 
Techcombank to raise US$363 million selling treasury stocks.
Techcombank to raise US$363 million selling treasury stocks.
Last March, Techcombank has successfully sold 14.7 million treasury stocks, equivalent to 1.48% charter capital for its employees with price of VND10,000 (US$0.44) apiece, and sold 93.2 million treasury stocks in the first round (equivalent to 9.39% of charter capital) to investors at the average price of VND91,000 (US$4.01) per share. 
By the end of April, Techcombank continued selling 164 million shares to foreign investors. Under the price of VND128,000 (US$5.64) apiece, the sale saw a return of VND21 trillion (US$922 million), putting the bank's market capitalization to US$6.5 billion.
The lender got a boost in March when Warburg Pincus agreed to invest more than US$370 million in the bank, in the largest ever private equity investment in the Southeast Asian nation.
Morgan Stanley, Viet Capital Securities and Deutsche Bank are the joint global coordinators for the issue.
Established in 1993, Techcombank is one of the largest private sector joint stock commercial banks in Vietnam in terms of total operating income and pre-tax profit as of 2017, and one of the most profitable banks in Asia, stated the Vietnamese lender. Moody's also gave Techcombank one of the highest ratings among Vietnamese private joint stock banks.
The 25-year-old bank provides a broad range of banking products and services to more than 5.4 million customers in Vietnam with an extensive network of 315 branches across the country.
TechcomFinance's revenue in 2017 was estimated at VND28.7 billion (US$1.2 million) by the firm's financial report released on February 28, while total expenses reached VND7.1 billion (US$313,000). 
Consequently, the firm's pretax-profit accounted for VND22.5 billion (US$992,250).
In 2017, Techcombank achieved total operating income of VND16.1 trillion and profit before tax of VND8.5 trillion (US$708 million and US$373 million, respectively), according to the bank's financial statement. Techcombank had industry leading profitability in 2017 with return on average equity of 28.0% and return on average assets of 2.7%.
Equity issues are booming in Vietnam as it speeds up a privatization drive. Strong interest from foreign investors and local funds has pushed up the benchmark index .VNI by 19% so far this year, making it one of Asia's best performers after rising nearly 50% last year.
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