Vietnamese securities companies race to boost capital amid high market demand
These companies understand the importance of boosting their capital to remain competitive and avoid falling behind their peers.
Securities companies in Việt Nam are racing to implement capital increases in response to high market demand. These companies understand the importance of boosting their capital to remain competitive and avoid falling behind their peers.
Viet First Securities Corporation (VFS) recently announced its plan to issue 120 million additional shares to existing shareholders. This proposal was approved at the 2023 annual general meeting and is awaiting confirmation from the State Securities Commission (SSC). If approved, VFS's charter capital will double from VNĐ1.2 trillion (US$48.7 million) to VNĐ2.4 trillion. The raised capital will be allocated equally to support proprietary trading and margin lending activities.
FPT Securities JSC (FTS) is planning to propose the issuance of 85.8 million shares to existing shareholders at its upcoming 2024 annual general meeting. This move aims to increase FTS's charter capital by over VNĐ858 billion. Additionally, FTS intends to introduce an Employee Stock Ownership Plan (ESOP) for its management staff, issuing over 5.5 million shares at a price of VNĐ10,000 per share. These plans, subject to SSC approval, would raise FTS's charter capital from over VNĐ2.14 trillion to VNĐ3.06 trillion.
ACB Securities Ltd Co (ACBS) has received approval from SSC and the Ministry of Finance to increase its charter capital by VNĐ3 trillion, reaching VNĐ7 trillion. The capital infusion comes from its parent company, Asia Commercial Bank (ACB).
SSI Securities Corporation (SSI) has obtained shareholder approval to issue 453 million shares, including a bonus issuance of 302 million shares at a ratio of 100:20 and a sale of 151 million shares to existing shareholders at a price of VNĐ15,000 per share with a ratio of 100:10. If successful, SSI's charter capital will reach VNĐ19.64 trillion, solidifying its position as a leading securities company.
Tiên Phong Securities JSC (TPS) is currently conducting a sale of 100 million shares to existing shareholders at VNĐ10,000 per share. If accomplished, TPS's charter capital will increase from VNĐ2 trillion to VNĐ3 trillion.
Ho Chi Minh City Securities Corporation (HSC) is implementing a plan to sell nearly 229 million shares to existing shareholders at a ratio of 2:1, with a selling price of VNĐ10,000 per share. The expected total value of the issuance is VNĐ2.29 trillion, which will be used to supplement capital for margin lending and proprietary trading activities. HSC also received approval to issue 68.6 million shares to pay dividends, increasing its charter capital from VNĐ4.58 trillion to VNĐ7.55 trillion.
At HSC's 2022 annual general meeting, CEO Trịnh Hoài Giang said that capital increases are essential for expanding market share and improving overall business efficiency.
"We have truly suffered in the past two years because we couldn't increase capital fast enough to seize the opportunities in the market. HSC has lost many customers, and some traditional customers have moved to other securities companies simply because they increased capital faster," shared Giang with the shareholders.
In fact, HSC used to be the second-largest securities company in the market with a brokerage market share of over 10 per cent before 2020. However, the company gradually lost market share and by 2023, it dropped to fifth position with a brokerage market share of just over 5 per cent.
HSC also used to be among the top three companies in terms of charter capital, but it has been surpassed by other companies such as VNDirect, VPBank Securities, SHS Securities and SSI.
By implementing their capital increase plans, these companies aim to regain market share, enhance competitiveness, and capitalise on the favourable market conditions. — VNS
