Shares of Vietnam’s Techcombank fell by as much as 20 per cent on their first day of trading on Monday, as one of the communist-ruled country’s biggest share offerings felt the brunt of souring market sentiment.
The bank, Vietnam’s second-largest listed lender, raised $922m in April from institutional investors in an offering priced at the top of its marketing range.
Under exchange trading rules, shares in Vietnam are allowed to move 20 per cent higher or lower than the reference price on the first day of listing. In morning trade, Techcombank hit a low of 102,400 dong ($4.49), falling from its 128,000 dong reference price, according to Reuters data.
Share offerings by Vietnamese companies have in recent months been heavily subscribed by foreign investors looking to profit from an economy growing at 7 per cent in which demand for consumer goods and financial services is growing. Vinhomes, the real estate arm of the conglomerate Vingroup, last month raised $1.35bn in the market’s biggest share offering to date.
However, shares have slumped recently, as global investors pulled back from emerging markets.
The Ho Chi Minh City stock exchange, after becoming Asia’s best performer in the first quarter of this year, wiped out all of its previous gains for the year in April and May.
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