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Vietcombank raises US$7.5 million from selling OCB shares
Nguyen Tung 15:04, 2018/04/17
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.
Vietcombank raises US$7.5 million from selling OCB shares.
677 investors took part in the auction registering to purchase 73.3 million shares, 11 times higher than the amount of shares on offer. In which, 8 institutional investors applied for around 11 million shares and 669 individual investors for 62.3 million shares. 

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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