BIDV's Vietnam IPO oversubscribed after market's 2011 slump

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Bank for Investment and Development of Vietnam, the country's third-largest lender by assets, received bids for more shares than it offered in a sale that may indicate resilience in investor demand after a market slump.

Investors bid for 140.9 million shares in the initial public offering scheduled for Dec. 28, the Hanoi Stock Exchange said in a statement on its website Friday.

BIDV is selling a 3 percent stake, or 84.8 million shares, with a minimum bid of VND18,500, valuing the sale at VND1.57 trillion ($75 million).

The Ho Chi Minh City Stock Exchange's VN Index has slumped 27 percent this year on concern the government's tight monetary policy to combat Asia's fastest inflation will hurt the economy and corporate earnings. The gauge dropped 1.2 percent to 356.21 on Friday, the lowest since May 2009.

"This is a positive signal given the current stock market downturn, showing that investors are still interested in buying value investments," said Nguyen Duy Phong, a Ho Chi Minh City- based analyst at Viet Capital Securities.

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