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OCB to list shares on Ho Chi Minh City Stock Exchange, expects US$1 billion market value post-listing

OCB
OCB to list shares on Ho Chi Minh City Stock Exchange, expects US$1 billion market value post-listing

OCB

21/5/2018 – Vietnam Orient Commercial Joint Stock Bank (OCB) is expecting an increase in market capitalization to US$1 billion after a planned listing on the country’s benchmark bourse during the second half of the year.

According to OCB’s Chairman Trinh Van Tuan, the 22-year old bank plans to list 750 million shares on the Ho Chi Minh City Stock Exchange (HoSE) during the late third quarter or early fourth quarter.

Besides, the bank also intends to sell 800 billion dong (about US$35 million) worth of shares to investors via private placement in the third quarter after issuing 14.2 percent of dividend shares and 20.5 percent of shares to existing shareholders.

With this, OCB expects to boost its registered capital by 50 percent to 7.5 trillion dong (about US$328 million) through the share issuances before its planned listing.

The lender also plans to offer as much as 25 percent of its shares to foreign investors before the listing, The bank is planning roadshows in Singapore, Hong Kong, and London in the next two months. Meanwhile, the bank has already garnered interest from multiple investors from Asia, Australia, and Europe,

“We are one of a few high-growth and good private banks in Vietnam that have more than a 25 percent stake available to foreign investors,” Tuan said, explaining that the country’s strong economy and stock market is providing the bank an opportune time to seek investors.

This year, the bank targets to expand its total assets by 37 percent to 116 trillion dong (about US$5.075 billion) and restricting its non-performing loans to below 2 percent. Moving forward, OCB also aims to reach an annual profit growth of 50 to 60 percent starting in 2019.

According to Tuan, the bank sees 2018 pretax profit doubling to 2 trillion dong, who with family holds nearly 18 percent of the lender’s shares.

OCB’s listing would make it the fourth Vietnamese bank to list on the nation’s major exchange this year, following HDBank, Tien Phong Bank and Techcombank, which plans to trade shares on the Ho Chi Minh City Stock Exchange next month.

Validus Capital partners Lighthouse Canton Group to set up US$15 million SME fund

Validus Capital

18/5/2018 – Validus Capital, an online financing platform based in Singapore has set up an S$20 million (about US$14.92 million) SME financing fund in partnership with asset management and family office advisory services firm Lighthouse Canton Group.

The fund, known as the LCV Trade Finance Fund, will eventually be scaled up to $200 million ($149.19 million), said Validus Capital in a statement.

Commenting on the partnership, Ajit Raikar, the Co-founder and CEO of Validus Capital said, “our collaboration with Lighthouse Canton ensures that we bring forth strong, stable, and reliable investors on our platform to support the ever-growing financing need of Singapore SMEs.”

Founded in 2015, Validus Capital curates an online financing platform which helps responsible corporates in Singapore to help their SME vendor base and to ensure SME vendors are able to gain access to growth capital at bank-like rates.

In Singapore, one of the leading SME financing marketplaces is the financing platform licensed by the Monetary Authority of Singapore, said to have disbursed over S$85 million (about US$63.4 million) in the past 24 months.

Against the backdrop of an S$20 million SME financing gap in Singapore, Validus Capital aims to finance at least S$1 billion ($750 million) of the gap in the coming three years.

“We’re already doing about S$10 million (about US$7.46 million) of financing in Singapore each month. Going by the current growth, we expect to reach disbursements of S$200 million per annum in 12 to 14 months’ time, across the geographies that Validus Capital are in,” added Ajit.

Moving forward, Validus Capital aims to expand regionally through starting Validus Indonesia in July 2018, an untapped market for SME financing that is five times the size of Singapore. The firm also plans to expand into another country in January 2019.

“To achieve that, we are looking to raise Series B with a few strategic investors, possibly by the end of this year,” Ajit said. Validus Capital last raised its Series A worth US$3 million from Vertex Ventures last July.

The fund will also be used to invest in machine learning and AI technology that will help to unleash new insights on local businesses.

“The team of Validus data scientists analyses and utilises new, complex datasets that will help make better-informed lending decisions and predicting needs for local businesses as they win new contracts and projects,” explained Ajit.