Dec. 29 (Bloomberg) -- Bank for Investment and Development of Vietnam, the country’s third-largest lender, raised 1.58 trillion dong ($75 million) in an initial public offering.
The lender, also known as BIDV, sold 84.8 million shares, a 3 percent stake, at an average price of 18,583 dong each in a two-day auction organized by the Hanoi Stock Exchange, according to results displayed on the exchange’s electronic notice board today. The highest successful bid was 35,000 dong, while the lowest was 18,500 dong, the same as the minimum.
Vietnam first proposed selling BIDV shares in 2007 as part of a policy of state asset sales, now in its third decade. The IPO comes after the Ho Chi Minh City Stock Exchange’s VN Index plunged 28 percent this year on concern tighter monetary policy aimed at curbing inflation will hurt growth and corporate earnings. The index was little changed at 350.51 today.
“Given current market conditions, it is a success considering the amount they are raising and the fact that the price is higher than the minimum,” said Marc Djandji, head of research at Viet Capital Securities.
Vietnam’s central bank increased its refinancing rate in October to 15 percent from 14 percent, and commercial lending rates in 2011 have climbed as high as 27 percent, according to the World Bank.
Hanoi-based BIDV received bids for 140.9 million shares in the IPO, which was managed by Morgan Stanley. The shares will begin trading on the Ho Chi Minh City Stock Exchange on June 26, Chairman Tran Bac Ha said yesterday.
The lender will offer as much as a 15 percent stake to a strategic partner nine months after the share sale, Ha said last month.
--Nguyen Kieu Giang. Editors: James Gunsalus, Nathaniel Espino
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