Vietcombank to issue 543 mln shares via private placement

Vietnam’s largest listed lender Vietcombank is moving closer to a private share placement that could raise tens of trillions of dong (VND10 trillion = $381 million), as the bank seeks to bolster capital amid policy support for state-owned lenders.

The state-controlled bank on Friday said it had issued a request for quotations to hire an independent valuation consultant for a planned private placement of shares. Bids must be submitted by Wednesday, January 28.

The move signals preparations for the offering, which was approved by shareholders at the creditor's 2025 AGM. Under the plan, the bank will sell up to 543.1 million new shares via private placement, equivalent to no more than 6.5% of outstanding shares at the time of issuance.

The shares will be offered to a maximum of 55 professional institutional investors, which may include existing shareholders. Vietcombank’s strategic shareholder is Japan’s Mizuho Bank.

The offering price will be set based on three criteria, and must not be lower than the bank’s book value, the valuation determined by an independent appraiser, and the average closing price of VCB shares over 10 consecutive trading days prior to investors confirming their purchase, or the most recent market closing price, the bank said.

Shares issued under the private placement will be subject to transfer restrictions of three years for strategic investors and one year for professional securities investors.

The Vietnamese state currently holds a 74.7% stake in Vietcombank, while Mizuho Bank owns 14.96%.

Vietcombank said that if Mizuho increases its stake to 20% through the placement, it would be entitled to nominate one additional board member, bringing its total representation to no more than two seats.

Other foreign investors holding at least 5% would be allowed to nominate one board member, subject to approval from the State Bank of Vietnam.

The capital-raising plan comes as Vietnam steps up efforts to strengthen state-owned banks.

A recently issued Politburo Resolution No. 79 sets a target for at least three state-owned commercial banks to rank among Asia’s top 100 banks by total assets by 2030, and calls for the four major state-owned lenders to lead the sector in scale, governance, and technology.

The resolution is widely seen as a breakthrough policy, allowing state-owned enterprises, including banks, to retain a larger share of post-tax profits and use proceeds from equitization and divestments to increase charter capital.

Yuanta Securities Vietnam has forecast that Vietcombank could be the first Vietnamese lender to enter Asia’s top 100 banks, citing its strong governance and financial position.

VCB shares have rallied sharply since the resolution was issued, breaking out of the VND60,000-70,000 ($2.67) range that had capped the stock for the past two and a half years.