MARKET INSIDER – Ho Chi Minh City Development Joint Stock Commercial Bank of Vietnam (HDBank, HoSE: HDB) shares soared to a new historical peak on October 23, driven by an explosion in trading volume as investors reacted to the bank’s improving fundamentals and, most significantly, its strategic moves to expand its foreign investor base.
The stock’s performance led the Vietnamese market, breaking its previous all-time high to close at 34,250 VND, a substantial 5.38% gain. This breakout followed a period of accumulation and was backed by massive volume, with nearly 12 million shares trading hands in the morning session alone, valued at almost 400 billion VND. HDB’s rally was so strong that it was the single largest positive contributor to the entire VN-Index, adding 1.45 points and lifting sentiment across the wider banking sector.
The primary catalyst for this enthusiasm is HDBank’s recently completed capital-raising deal with foreign partners. The bank announced it had finalized a convertible bond issuance, a move that raised its charter capital by approximately 10% to over 38,594 billion VND. This transaction involved issuing nearly 349.3 million new shares to three existing institutional shareholders: Sky Capital Advisor Pte. Ltd., Clarendelle Investment PTE. Ltd., and Core Capital PTE. Ltd.
As a direct result of this strategic deal, HDBank has officially raised its foreign ownership ceiling from 17.5% to 27%. This move immediately opens the door for greater participation from international funds and signals the bank’s readiness for deeper foreign partnerships.
Market analysts view this transaction as a crucial stepping stone toward an even larger strategic goal. The prospect of HDBank further raising its total foreign ownership limit (FOL) to 49% is now a key factor driving the stock. A recent report from Yuanta Securities highlighted that this potential to sell a larger stake to foreign strategic investors serves as a “powerful short-term catalyst” for the share price.
Yuanta Securities believes HDB’s stock deserves a premium valuation compared to the sector average, citing its superior operational efficiency. The firm has set a price target of 35,530 VND per share, corresponding to a projected P/B ratio of 1.8x for 2025. Analysts also noted that any supply pressure from the new shares is minimal, as the conversion price from the bonds was set at 10,600 VND, far below the current market price, incentivizing the new partners to hold for the long term.
