Vietcombank shares sell out for modest prices
17:15' 27/12/2007 (GMT+7)

VietNamNet Bridge – The Bank for Foreign Trade’s (Vietcombank) IPO successfully wrapped up yesterday; the organizing board announced  97.5mil shares were sold for between VND102,000-250,000/unit after the check of orders finished at 11.55 pm.

 

At the IPO
The average accepted price of a Vietcombank share was VND107,860, the lowest successful offer was VND102,000/share and the highest successful bid was VND250,000/share. The lowest bid at the auction was the initial VND100,000/share price.

 

Director of the HCM City Stock Exchange Tran Dac Sinh confirmed the news this morning to VnExpress.

 

Mr Sinh said of 9.500 who registered to join the IPO 180 institutional investors and more than 8,600 individual investors successfully purchased Vietcombank shares, buying 122.2mil units. 9,068 domestic investors registered to buy 46.7mil units, while 153 domestic institutions registered to buy 34.8mil. Meanwhile, the remaining 40.7mil shares were registered by foreign investors (45 institutions registered to buy 39.9mil units and 207 foreign individuals registered 804,700 shares). Foreign investors successfully purchased 28.7mil units, out of the available 29.25mil.

 

Vietcombank has successfully raised $10.5tril ($656.25mil) from its public offering.

 

Experts all believe the now lackluster stock market, will heat up early 2008. They said the market has quieted while commercial banks reduce securities loans as required by the State Bank of Vietnam. Resultantly, few investors are buying because they have paid off bank debts and have little available capital to inject.

 

However, a resurrection will occur after December 31. Huynh The Du, Lecturer at the Fulbright Economic Teaching Program, said commercial banks will begin their new business year as of January 1, 2008 and money can be lent to fund securities investments, thereby fueling the stock market.

 

Dr. of Economics Ho Cong Huong also says Vietnam has every reason to believe the stock market will warm up as economic confidence is restored.

 

Lu Thi Thanh Binh, Director of MHB’s Securities Company, also says she believes the stock market will soon pull itself out of the slump, adding that his company will increase chartered capital next year from VND60bil to VND300bil.

 

(Source: VNE, VietNamNet)

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