Banks delay plans to change stock exchanges in 2023

Monday, Dec 25, 2023 06:19

A customer makes transactions at Nam A Bank. Some banks, including Nam A Bank, have so far failed to meet plans to change the stock exchanges this year. — Photo Nam A Bank

Unfavourable market development has caused many banks to rethink their plans to change stock exchanges.

Many banks listed on the Unlisted Public Company Market (UPCoM) have approved plans to move their listing to the Ho Chi Minh Stock Exchange (HoSE) or Hanoi Stock Exchange (HNX) at their annual general meetings of shareholders (AGM) early this year. However with 2023 almost over, no banks have made the switch.

At its 2023 AGM, Nam A Bank (code: NAB) continued to approve the plan to register to list all shares in circulation on HNX or HoSE depending on market conditions. The stock listing plan was approved by the bank’s AGM in 2022 but then postponed to ensure shareholder rights in the context of an unfavourable macro environment and unpredictable stock market developments.

By May 2023, HoSE said it received Nam A Bank's listing registration application. The bank planned to register to list 846.4 million shares with the code NAB. The consulting organisation for listing is SBS Securities Joint Stock Company.

Then, in August 2023, Nam A Bank announced a plan to change the exchanges due to be implemented at the beginning of the fourth quarter of 2023. If this plan is achieved, Nam A Bank will be the only bank to successfully change the exchanges this year. However, since then, Nam A Bank's plan to change floors has not made any new progress.

Meanwhile, a series of other banks also proposed plans to change the exchanges from the beginning of this year, but there have been so far no signs of implementation or submission of listing documents.

At VietBank (code: VBB), the bank’s AGM in April 2023 decided to list VBB shares on HoSE when meeting the conditions prescribed by law and having favourable market conditions. VietBank said the listing on the stock market for VBB shares was important, which demonstrated the bank was increasingly transparent in its operations as a public company, improving its operating capacity and competitiveness to implement strategic goals for the 2023-25 period.

While the listing plan was delayed, VBB stock price also did not move very positively this year. Currently, VBB is one of three bank stocks below par value. VBB closed at VNĐ9,500 per share on December 20, 2023.

ABBank (code: ABB) also postponed listing shares in 2022 and the bank continued to submit to the bank’s 2023 AGM a plan to list on HoSE when conditions were favourable. In fact, ABBank has had a plan of listing on the stock market since 2018, but for many reasons, this plan has not yet been implemented. Along with VBB, ABB shares are also below par value, currently only around VNĐ8,000 per share.

BVBank (code: BVB) also proposed a plan to list shares on HoSE. Previously, BVB shares were registered for trading at UPCoM from July 2020.

The Vietnamese banking system currently has 17 banks listed on HoSE, two banks listed on HNX and eight banks listed on UPCoM. — VNS  

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