Foreign investors seeking to purchase BVSC shares

Foreign investors seeking to purchase BVSC shares
18/12/2006 01:58:00 PM

Many foreign investors have expressed their desire to make capital contributions to the Bao Viet Securities Company (BVSC) by purchasing shares, according to Nguyen Quang Vinh, BVSC Director General.

Mr Vinh officially announced that BVSC would list at the Hanoi Securities Trading Centre (HASTC) starting December 18.

“These are big and prestigious international financial institutions in the world, which want to make capital contributions to BVSC as strategic shareholders,” said Mr Vinh.

However, BVSC will only consider proposals from investors when it kicks off the plan to increase its chartered capital in the second phase, slated for early 2007.

“The decision will be made after BVSC’s parent group, Bao Viet, the leading insurer in Vietnam, set up its development strategy,” Mr Vinh said.

“If we choose strategic shareholders in advance, our choice may conflict with Bao Viet’s decisions to be made later, when the group is equitised.”

Regarding the increased chartered capital, BVSC will present the detailed plan during the annual shareholder’s meeting to be held in early 2007. The company’s chartered capital will be raised to either VND250 billion (US$15.62 million) or VND300 billion (US$18.75milliom).

BVSC has increased its capital from VND50 billion (US$3.1 million) to VND150 billion (US$9.3 million). However, the capital level proves to be not high enough to meet the requirements to be legalised by the State Securities Commission, which say that securities companies must have the minimum capital of VND200 billion (US$12.5 million). BVSC, like many other securities companies, will have no other choice than increasing its chartered capital.

On Dec 18, BVSC shares are scheduled to put into transaction at the Hanoi Securities Trading Centre. The company will be the third securities companies to list shares on the stock market.

Source: VietNam Agency