Bao Viet to sell 8.74% of chartered capital through auctions
Published April 10th, 2007
The Ministry of Finance has officially approved a plan to change Bao Viet, the nation’s biggest insurer, into a joint stock company.
Under the plan, nearly 60mil shares, or 8.74% of chartered capital of Bao Viet, will be sold through auctions at a securities trading centre.
The joint stock company, Bao Viet Group, will have the total chartered capital of VND6,800bil. Bao Viet will issue 680mil shares (face value is VND10,000), of which the State will hold 444,300,000 shares, or 65.34% of the total chartered capital.
Bao Viet staff can buy 4.76mil shares at preferential prices (0.70% of total chartered capital). The 4,273 Bao Viet employees on the corporation’s pay-roll as of December 31, 2005, the time of the corporation’s equitisation, will be able to buy stocks at preferential prices in accordance with the current laws.
Domestic strategic shareholders will hold 49.1mil shares, or 7.22% of total chartered capital, while foreign strategic investors will hold 122.4mill shares, or 18% of total chartered capital.
Only 59.44mil shares, or 8.74% of total chartered capital, will be sold to the public through auctions on the bourse. Foreign investors will be able to buy 13.6mil, or 2% of total chartered capital at maximum.
Domestic institutions can register to buy 3.4mil shares at maximum, or 0.5% of total chartered capital, while domestic individual investors can buy 340,000 shares, or 0.05% of chartered capital.
Insurance companies operating in Vietnam, including member companies and investment funds belonging to these insurance companies, and Bao Viet member companies, are not allowed to buy IPO (initial public offering) shares.
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