The Viet Nam Post Corporation (Vietnam Post) plans to auction 140.5 million shares of Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank), equivalent to 100 per cent of Vietnam Post’s ownership in the bank.

The Ha Noi Stock Exchange (HNX) will hold the auction on April 21, 2023.

The starting price for offering shares is VND22,908 (US$0.98) per share. The transfer of Vietnam Post's capital at LienVietPostBank aims to implement the Government's direction on restructuring Vietnam Post's capital contribution in the banking and insurance sectors.

The State Bank of Viet Nam has directed LienVietPostBank to co-ordinate with Vietnam Post to develop a plan and roadmap to handle the postal transaction office system after the share auction; including a plan to manage LienVietPostBank's network units, including the system of postal transaction offices, to ensure that the bank operates safely, efficiently, and in compliance with the law.

At the same time, the central bank also requested LienVietPostBank to coordinate with Vietnam Post to fully inform investors who receive shares to fulfill the obligations and responsibilities of shareholders in accordance with regulations.

Investors must ensure compliance with regulations on the ownership ratio of individuals, organisations and related persons as regulated. For the number of shares that the investor wins the auction but exceeds the regulated ownership ratio and is not approved by the Viet Nam Securities Depository Center, the Vietnam Post will not take responsibility and will not refund investors, including deposit. The number of shares that the investors have paid for but are not eligible to purchase will be still owned by the Vietnam Post.

Foreign investors when buying shares of LienVietPostBank must ensure that the registered purchase volume of shares does not exceed the volume allowed by the Ho Chi Minh Stock Exchange at the time of registration for the auction, which is announced daily on the exchange's website. — VNS