Sunday, 04 December 2011
Posted by Serath
PHNOM PENH, Dec 4 (Cambodia Herald) - Bank for Investment and Development of Vietnam, the parent of the second largest bank in Cambodia in terms of capital, plans to make an initial public offering (IPO) of its shares later this month under an equitization plan unveiled by Vietnamese Prime Minister Nguyen Tan Dung last week.
The plan calls for the conversion of BIDV from a state-owned bank to a joint stock company with the IPO on Decembe 28 set at three percent of the bank's capital, which currently amounts to VND 28.3 trillion ($1.4 billion).
According to the prime minister's decision, the state will retain at least 65 percent of the bank, which owns Bank for the Investment and Development of Cambodia (BIDC), established in Phnom Penh in 2009. With $70 million in capital, BIDC is the second largest bank in Cambodia.
The decision announced last week that the effective partial privitization of BIDV will take place in two phases.
Under the first phase to be completed in 2010, the bank will issue shares equivalent to 22 percent of its capital. Apart from the three percent allocated in the IPO, this includes 15 percent for strategic foreign investors and three percent for trade unions. The remaining one percent is to go to staff including 85 officers of the bank's joint ventures and affiliates in Cambodia, Laos and Malaysia.
Under the second phase in 2015, foreign investors will be able to increase their stake to 20 percent. The decision by the prime minister requires the foreign investors to hold their shares for at least five years.
BIDC entered the Cambodian market in September, 2009, when it acquired the Prosperity Investment Bank, injecting fresh capital into the bank and renaming it.
The bank, which also has a subsidiary in Ho Chi Minh City, has said its goals are to connect the financial markets of Vietnam and Cambodia while providing services to Vietnamese investors and other parts of the Cambodian economy.
PHNOM PENH, Dec 4 (Cambodia Herald) - Bank for Investment and Development of Vietnam, the parent of the second largest bank in Cambodia in terms of capital, plans to make an initial public offering (IPO) of its shares later this month under an equitization plan unveiled by Vietnamese Prime Minister Nguyen Tan Dung last week.
The plan calls for the conversion of BIDV from a state-owned bank to a joint stock company with the IPO on Decembe 28 set at three percent of the bank's capital, which currently amounts to VND 28.3 trillion ($1.4 billion).
According to the prime minister's decision, the state will retain at least 65 percent of the bank, which owns Bank for the Investment and Development of Cambodia (BIDC), established in Phnom Penh in 2009. With $70 million in capital, BIDC is the second largest bank in Cambodia.
The decision announced last week that the effective partial privitization of BIDV will take place in two phases.
Under the first phase to be completed in 2010, the bank will issue shares equivalent to 22 percent of its capital. Apart from the three percent allocated in the IPO, this includes 15 percent for strategic foreign investors and three percent for trade unions. The remaining one percent is to go to staff including 85 officers of the bank's joint ventures and affiliates in Cambodia, Laos and Malaysia.
Under the second phase in 2015, foreign investors will be able to increase their stake to 20 percent. The decision by the prime minister requires the foreign investors to hold their shares for at least five years.
BIDC entered the Cambodian market in September, 2009, when it acquired the Prosperity Investment Bank, injecting fresh capital into the bank and renaming it.
The bank, which also has a subsidiary in Ho Chi Minh City, has said its goals are to connect the financial markets of Vietnam and Cambodia while providing services to Vietnamese investors and other parts of the Cambodian economy.
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