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TCB attracts cornerstone investors: Bloomberg
Posted on Thursday, 12 April 2018 13:32
GIC is in talks to become a lead cornerstone investor in the initial public offering (IPO) of Vietnam Technological and Commercial (TCB) that is expected to value the Vietnamese lender at roughly USD 6.00 billion, Bloomberg reported.
People close to the situation told the news provider the financial institution is aiming to raise USD 900.00 million, of which the Singaporean sovereign wealth fund is looking to acquire less than USD 100.00 million-worth of shares.
These sources added local fund manager Dragon Capital is also in the running to become a cornerstone investor, though details are yet to be finalised and the chosen backers could change.
Zephyr, the M&A database published by Bureau van Dijk, shows TCB’s listing would be Vietnam’s largest since October when Vincom Retail announced a debut worth USD 680.00 million.
Established in 1993, the lender is one of the largest joint stock banks (JSBs) in Vietnam, with more than 5.40 million local customers and a network of 315 branches across the country, and one of the leading banks in Asia.
In 2017, TCB achieved total operating income of VND 16,100 billion (USD 703.88 million at current exchange rates) and profit before tax of VND 8,500 billion.
The institution had a return on average equity of 28.0 per cent and return on average assets of 2.7 per cent in 2017 and it achieved the highest non-interest income ratio among other JSBs of 45.0 per cent last year.
Warburg Pincus started investing in Southeast Asia in 2013, with Vietnam as its maiden market, and has since participated in seven companies in the region, including Vincom Retail and Lodgis Hospitality.
The private equity house announced last month it would inject USD 370.00 million in TCB as part of an equity raising to provide growth capital to fund expansion.
Warburg Pincus’ latest investment represents the group’s largest-ever in Vietnam to date and brings its total commitment in the country to over USD 1.00 billion.
© Zephus Ltd