Foreign funds registered to buy all of BIDV's privately issued shares

Four foreign funds participating in the BID share purchase ahead of the private offering are financially strong institutions involved in this capital acquisition.

BID shares hit VND 39,800 per share during the February 6 trading session, with a matching transaction volume of 3.9 million units. The proposed early 2025 private placement, which is aimed at overseas investors, has attracted investor interest in the shares. The anticipated VND 4.8 trillion in profits from the issuance will go toward credit growth, under Board Resolution No. 31, which approves the private placement plan.

The list of professional securities investors participating in the private placement includes five institutional investors who have registered to acquire the entire offering. The shares sold to professional investors will be subject to a one-year transfer restriction from the closing date of the offering, except for transfers between professional securities investors.

Vietnam Enterprise Investments Limited (VEIL), which is anticipated to get almost 59 million shares, or 47.7% of the overall offering, is anticipated to receive the largest allocation among them. Hanoi Investments Holdings Limited, which registered to buy 15.7 million shares; DC Developing Markets Strategies Public Limited Company, which registered to buy 8.5 million shares; and Samsung Vietnam Securities Master Investment Trust (SSMIT), which plans to buy more than 1.9 million shares, are among the other foreign investors involved in the transaction. The State Capital Investment Corporation (SCIC), a domestic investor, is also anticipated to purchase 38.7 million shares.

It is noteworthy that Dragon Capital is the largest investor in this share sale. Dragon Capital Vietnam Fund Management Joint Stock Company, established in 1994, is the longest-standing fund management company in Vietnam and Southeast Asia, known for its strong financial capacity and extensive market experience.

As of December 31, 2024, the total estimated value of the funds handled by Dragon Capital is close to USD 6 billion. Among these, Dragon Capital-managed Vietnam Enterprise Investments Limited (VEIL), the biggest fund, has assets worth around USD 1.8 billion. After the government, Dragon Capital is now Vietnam's second-largest investor. Since its founding, the fund management firm has remained steadfast in its support of the Vietnamese stock market.

According to BIDV, the entire VND 4.805 trillion raised from this offering will be utilized for credit activities, focusing on portfolio restructuring and lending to financially sound businesses with effective, safe operations, feasible business plans, and projects. Priority will be given to SMEs, high-potential FDI enterprises, green credit expansion, and retail lending.

The maximum foreign ownership limit at BIDV is 30%. According to the latest shareholder record dated December 24, 2024, foreign ownership at BIDV stood at 16.88%. Previously, BIDV had completed a stock issuance to pay dividends to existing shareholders by issuing nearly 1.2 billion additional shares, increasing its charter capital by approximately VND 11.971 trillion, bringing BIDV’s total charter capital to over VND 68.975 trillion.

In 2024, all key business targets of BIDV met or exceeded the goals set by the State Bank of Vietnam (SBV) and the General Meeting of Shareholders. The bank’s total assets reached VND 2.76 quadrillion, marking a 20% increase year-over-year, maintaining its position as one of Vietnam’s largest joint-stock commercial banks in terms of total assets. Customer loans amounted to VND 2.056 quadrillion, up 15.7%, while customer deposits grew 14.57% to VND 1.95 quadrillion.

Meanwhile, credit quality remained well-managed, with a non-performing loan coverage ratio of 133.68%. Key profitability and safety indicators remained strong, with Return on Assets (ROA) at 0.99%, Return on Equity (ROE) at 18.79%, and a Capital Adequacy Ratio (CAR) of 8.6%.

BIDV reported its Q4/2024 consolidated financial statements, with net profit after tax reaching VND 7.464 trillion, a 21.6% increase year-over-year, maintaining a high level compared to previous quarters. The sharp profit growth was driven by non-interest income surging 88%, alongside net interest income rising 5% YoY to VND 15.639 trillion. As a result, BIDV’s total operating income in Q4/2024 increased by 28.2% to VND 26.405 trillion.

For the full year 2024, BIDV recorded a net profit of VND 25.121 trillion, up 14.3% year-over-year. According to Vietcap Securities, BIDV’s 2024 credit growth outpaced the overall banking system’s credit growth of 15.1%, maintaining its leading market share in lending. The bank’s customer deposit growth for 2024 stood at 14.6%, while its Current Account Savings Account (CASA) ratio for Q4/2024 was 20.1%.