PE-backed Vietnamese lender completes $992m IPO

The bank sold 164 million shares at VND128,000 per share, the top of the indicative price range, giving a market cap of VND149 trillion. A group of cornerstone investors including Fidelity Investments, Singapore's GIC Private, and Dragon Capital covered 76% of the offering. TCB is expected to begin trading in June.

Established in 1993, TCB has a network of 315 branches and 1,117 ATMs across Vietnam, through which it provides a broad range of banking products and services to more than 5.4 million customers. Its total operating income grew from VND11.6 trillion in 2016 to VND16.1 trillion in 2017, while net income rose from VND3.1 trillion to VND6.8 trillion.

Warburg Pincus invested $370 million in TCB last month, the country's largest PE deal so far, supporting the bank's plan to boost its charter capital as part of its expansion strategy. The GP undertook the investment in hopes of benefiting from Vietnam's strong economic fundamentals, particularly a growing middle and upper-income population expected to drive consumption trends.

TCB's IPO breaks the record set last year by Vincom Retail, another Warburg Pincus portfolio company, which raised VND16.1 trillion in its offering last year. In its first deal in Vietnam, Warburg Pincus led a consortium in 2013 to invest $300 million in the shopping mall operator across two tranches in 2013 and 2015. The GP exited about two-thirds of its stake through the IPO.

Warburg Pincus has also entered into a joint venture with VinaCapital to develop hospitality assets in Vietnam, and has also established a $200 million infrastructure and logistics platform alongside industrial conglomerate Becamex IDC.

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• Topics
• Southeast Asia
• Financials
• IPO
• Vietnam
• Financial Services
• Warburg Pincus Asia
• GIC Private
• Dragon Capital Group
• Exit