SeABank plans to file for IPO

16:33 | 22/08/2020
The Board of Management at SeABank has recently approved a strategic plan to raise its charter capital to VND12.088 trillion ($525.57 million),then file for an initial public offering (IPO) in the fourth quarter at the latest.
seabank plans to file for ipo
SeABank plans to file for an IPO

SeABank said it is continuing to collaborate with relevant agencies to expedite its IPO process. The lender aims to list on the Ho Chi Minh City Stock Exchange (HSX) or register for trading on UPCoM. However, the ongoing COVID-19 crisis has put a spanner in the works for the bank’s IPO plan.

In case of unfavourable virus-induced market conditions hampering listing or transaction registration on the UPCoM, SeABank will promptly report to the State Securities Commission (SSC) and related agencies.

Before SeABank, another local lender Saigonbank was permitted to be traded on the UPCoM.

However, some banks such as MSB, Nam A Bank, OCB have been stuck in the mud with their IPO plans due to volatile market stemming from the pandemic.

Currently, there are 19 listed banks with 10 listed on the HSX, three on the HNX, and six on the UPCoM.

With the potential new source of funding, SeABank expects to allocate VND1.789 trillion ($77.78 million) on corporate and retail clients in a bid to strengthen its credit businesses, develop individual and corporate credit programmes, and adding medium and long-term capital to finance projects.

The bank will spend additional VND850 billion ($36.96 million) on low-risk credit institutions and government bonds, along with VND80 billion ($3.48 million) on fixed assets, improving fundamental infrastructure including high-tech application and facilities, to name a few.

By Luu Huong

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