Vietnam state-run Incombank is seeking the government’sx approval for its plan to sell more than the allowable 30% of state holdings to outsiders as it goes public this year.
The commercial bank, known as Bank for Industry and Commerce, is one of the four state-run banks ordered by the government to undertake partial share sales in 2007.
It wants to sell 49% stakes to strategic partners, foreign financial institutions, private investors and senior staff.
However, the government allows it, as well as the three other banks, to sell a 30% to outsiders.
The state is supposed to retain control of the remaining 70% of the banks.
The Hanoi-based bank, which has registered capital of VND10 trillion (US$625 million) is also expected to list its shares on the country’s stock market later this year.
Incombank is now in the process of finding a foreign consultant to manage its initial public offering (IPO), planned for October.
The lender is expected to pick up an advisor by May.
A banking expert who chose to remain anonymous said seven international banks will take part in the tendering process - Lehman Brothers, Merrill Lynch, JP Morgan, UBS, Morgan Stanley, Macquarie, and Daiwa Securities.
The bank has been employing an international auditing company since earlier this year to prepare for the process.
With 137 branches and 500 transaction points nationwide, the bank reported its total assets rose by 19% to VND138.26 trillion ($8.6 billion) at the end of last year, when deposits reached VND124 trillion.
Incombank has funded several projects in the telecom, energy and construction sectors, such as the project to launch Vietnam's first telecoms satellite and four power plant projects.
Last year's gross profit totaled VND780 billion, while Incombank only targeted VND650 billion in pre-tax profit.
Its bad debt ratio reportedly stands at 1.38%, the lowest level among existing state owned banks.
Source: Thanh Nien equity mekong capital vinacapital
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