Vietcombank raises US$7.5 million from selling OCB shares
Vietcombank has successfully offloaded its entire shareholding of 6.67 million in Orient Commercial Bank (OCB) for a return of VND172 billion (US$7.5 million), more than double the expectation.
The average successful bidding price is recorded at VND25,771 (US$1.14) apiece, doubling the starting price of VND13,000 (US$0.57) per share, announced the Hanoi Stock Exchange on April 17.
Vietcombank raises US$7.5 million from selling OCB shares.
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The said share amount was what left of 18.9 million OCB shares, equivalent to 4.85% of charter capital that Vietcombank put on sale last year. However, only 13.1 million shares were purchased with an average price of VND13,000 (US$0.57) per share, raising over VND171 billion (US$7.6 million) in return.
OCB previously capped the foreign ownership limit (FOL) at the bank to be at 23.66% of capital, but following the divestment from BNP Paribas on last December, the FOL has been now reduced to 4.98%, said OCB in a statement on December 27 2017.
Consequently, foreign investors will not be allowed to take part in the upcoming auction of OCB shares.
In 2017, OCB posted pre-tax profit of VND1 trillion (US$43.7 million), 2.1 times higher than that of 2016, according to the lender's financial statement. The results is thanks to strong growth in investment and lending, which saw a net return of VND2.4 trillion (US$104.8 million), up 44.6% year-on-year.
By the end of 2017, OCB's total asset reached VND84.3 trillion (US$3.7 billion), increasing 32% compared to the year beginning, while credit balance is recorded at VND48.1 trillion, up 25% over last year's period.
OCB's equity is estimated at VND6.1 trillion (US$266.5 million), 30% higher than in the year beginning.
In an unrelated move, Vietcombank has completed selling 7.6 million shares of Vietnam Airlines for an average price of VND50,000 (US$2.18) per share, resulting in a net profit of VND210 billion (US$9.1 million).
After completing the transaction, Vietcombank still holds 14.8 million Vietnam Airlines shares, equivalent to 1.21% charter capital.
Vietcombank's consolidated pre-tax profit in 2017 reached VND11 trillion (US$485 million), a sharp increase of 32.9% over the last year and 16% higher than the target, making it the most profitable bank in the Vietnamese banking sector, according to the bank's year-end meeting on January 12 to prepare its targets for 2018
At the end of 2017, the bank's total capital was estimated at VND890 trillion (US$39 million), up 38.7% year-on-year and achieving 118% of the 2017 target. Notably, the growth rate of capital mobilization in the wholesale and retail sector was 19.6% and 21.9%, respectively.
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Vietnam news in brief - August 24
Read The Hanoi Times to stay up to date on developments in Vietnam.
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