Reason for big fluctuations in VIB shares

VIB shares undergo a massive transfer, leading to changes in the ownership structure of key shareholders. 

On October 29, the stock market showed signs of recovery in both indices and liquidity. Notably, liquidity improved significantly, with the total trading value on the three exchanges reaching VND 19,973.8 billion, marking a 62% increase compared to the previous session. This uptick is a positive signal, given that the market has faced numerous sessions where stagnant capital flows hindered efforts to reach the 1,300-point threshold.

In this session, Vinhomes (VHM) continued its share buyback as planned. According to the latest update from the Ho Chi Minh Stock Exchange (HoSE), by the end of the October 29 session, Vinhomes had acquired over 57 million treasury shares, amounting to 15.43% of its registered volume, an increase of more than 8.8 million shares compared to the previous session.

Additionally, the session witnessed heavy foreign sales of VIB shares. Data shows 18 block orders totaling 300 million VIB shares were sold at a combined value of VND 5,401 billion, contributing to the overall block trading value of VND 7,265 billion, a 242% increase over the prior week’s session and accounting for 36.4% of the market’s total trading value.

These sales were primarily from foreign investors, with domestic investors absorbing a substantial amount. The strategic shareholder CBA of VIB confirmed its completion of selling 300 million VIB shares during this session on October 29. As per regulations, this transaction is expected to settle on October 31, netting CBA approximately AUD 320 million (equivalent to VND 5,314 billion).

CBA stated in its announcement that "the divestment aligns with CBA's strategy to focus on its core banking operations in Australia and New Zealand. Following this transaction, CBA will retain around a 5% stake in VIB."

No foreign investors were recorded as buyers against the significant sales, with individual investors leading net purchases at VND 3,213 billion, domestic institutions purchasing VND 2,187 billion, and proprietary trading accounting for VND 513 billion.

Previously, VIB has also recorded consistent large foreign sales. In the most recent session on September 24, foreign investors sold over 148 million VIB shares valued at VND 2,664 billion, with domestic individual investors being the main buyers at VND 1,611 billion, domestic institutions at VND 261 billion, and proprietary trading at VND 792 billion.

Following this session, Unicap JSC became a major shareholder of VIB after acquiring nearly 66.8 million shares, equivalent to 2.24% of VIB's charter capital.

The significant share transfers are viewed as part of foreign investors’ divestment strategy at VIB, executed after VIB’s extraordinary shareholders’ meeting in June approved the reduction of the foreign ownership limit from 20.5% to 4.99%, effective July 1, 2024. Since early July, CBA has consistently sold large volumes of VIB shares to meet this capped foreign ownership limit.

According to the list of major shareholders holding over 1% of VIB shares as of October 4, Unicap and related parties hold 5.669% of shares, with CBA holding 14.77%. As of October 5, Unicap’s Chairwoman and CEO, Ms. Nguyen Thuy Nga, holds over 70 million shares (2.351% of VIB’s capital), and related party Ms. Tong Ngoc My Tram, a Board Member, holds nearly 98 million shares (3.288% of VIB’s capital). In total, Unicap and its related parties hold 222,522,669 shares, or 7.704% of VIB’s ownership.

The list of shareholders with over 1% ownership will be updated following this large-scale transfer of shares.

At the close of the session on October 29, VIB’s market price stood at VND 18,750 per share, reflecting an increase of nearly 3% from the previous session.