LPBank Securities (LPBS) Plans IPO at 30,000 VND/Share, Charter Capital to Reach 14,086 Billion VND

Overview

LPBank Securities (LPBS) has announced plans for an initial public offering (IPO) at 30,000 VND per share, aiming to raise its charter capital to 14,086 billion VND. The move is expected to position LPBS among the top six securities firms by market capitalization on the Vietnamese stock exchange. The IPO details were shared during a briefing on May 19, with management addressing investor concerns about post-IPO price performance.

Key Facts

• LPBS plans to issue shares at 30,000 VND per share in its upcoming IPO.
• Post-IPO charter capital is targeted at 14,086 billion VND (approximately USD 563 million).
• Equity is expected to reach nearly 18,000 billion VND after the offering.
• The IPO would place LPBS among the top six securities firms by market capitalization.
• Management used P/B and ROE valuation methods, with a forward P/B of 2.2-2.3x based on projected earnings.
• The company has maintained high growth rates, though management expects sustainable growth of 20-25% going forward.
• The IPO price of 30,000 VND is based on a P/B multiple comparable to top-tier securities firms (average 2.2-3.1x over cycles).

What Happened

On May 19, LPBank Securities (LPBS) held a briefing to discuss its IPO and listing plans. Chairman Nguyen Duy Khoa and CEO Hoang Viet Anh presented the offering details, including the 30,000 VND per share price and the target charter capital of 14,086 billion VND. The company aims to become one of the top six securities firms by market capitalization immediately after listing.

Addressing concerns about post-IPO price declines seen in other securities stocks, Chairman Khoa noted that external factors such as black swan events and geopolitical tensions can affect short-term prices, but investors should focus on the company’s ability to sustain growth. He emphasized that LPBS has demonstrated strong growth and that the key metric is consistent growth rather than peak numbers. CEO Hoang Viet Anh explained the valuation methodology, citing a forward P/B of 2.2-2.3x based on projected earnings, which is within the range of top-tier peers.

Market Context

LPBS is not yet listed, but its IPO comes at a time when several securities stocks have experienced significant corrections after listing. The Vietnamese securities sector is cyclical, with P/B multiples fluctuating between 2.2x and 3.1x over market cycles. LPBS’s IPO price implies a forward P/B at the lower end of this range, reflecting management’s conservative outlook. The company’s post-IPO equity of nearly 18,000 billion VND would make it one of the largest securities firms by capital base, competing with established players on HOSE.

Strategic Significance

The IPO represents a major capital raise for LPBS, enabling it to expand its brokerage, margin lending, and investment banking operations. By targeting a top-six market cap position, LPBS signals its ambition to compete with the largest securities companies in Vietnam. Management’s emphasis on sustainable growth (20-25%) rather than high short-term growth suggests a focus on long-term value creation. The use of P/B and ROE valuation methods indicates a disciplined approach to pricing, aiming to attract institutional investors who prioritize fundamentals.

What to Watch

• Final IPO subscription date and listing timeline on HOSE or HNX.
• Post-IPO price performance relative to the 30,000 VND offer price.
• LPBS’s first quarterly earnings report after listing to assess growth trajectory.
• Any additional capital raising plans or strategic partnerships announced post-IPO.
• Market reaction from institutional investors and foreign ownership limits.