VPBank Securities Corporation has just announced it would offer shares to existing shareholders and increase its charter capital, according to the minutes and resolutions of the Extraordinary General Meeting of Shareholders on October 24.

Specifically, the company plans to offer 608 million shares, equivalent to the total issuance value at par value of VND6.08 trillion (US$245 million). The offering ratio is 1:0.6816, which means that a shareholder who owns 10,000 share will be able to buy 6816 shares.

The offering price is expected to be VND10,000 a share, with the implementation time set to be from the fourth quarter of 2022 to the first quarter of 2023, right after the approval of the State Securities Commission (SSC).

The amount of more than VND6 trillion from this offering will be used to supplement capital for quarterly lending (30 per cent), proprietary trading (60 per cent) and other activities (10 per cent).

If the plan is successful, the charter capital of VPBank Securities will increase from VND8.92 trillion to nearly VND15 trillion, becoming the securities company with the largest charter capital in Viet Nam, surpassing SSI Securities Corporation (VND14.91 trillion) and VNDirect Securities Corporation (VND12.2 trillion).

Regarding business results, in the third quarter financial statement, the firm's operating revenue reached nearly VND287 billion, more than 10 times the figure of the same period last year thanks to revenue from bonds, brokerage, margin lending and advances. It did not earn from bond advice services in the third quarter of last year.

Accounting for a large proportion of the revenue structure is interest income and receivables of more than VND95 billion and profit of VND93 billion from selling FVTPL (fair value through profit and loss) assets. As a result, the company reported a profit of nearly VND177 billion. Last year, the securities firm lost over VND300 million.

VPBank Securities' profit after tax in the first nine months was more than VND251 billion, 78 times the figure of the same period last year. As of September 30, the outstanding balance of margin loans and advance payments of VPBank Securities reached over VND3.59 trillion.

VPBank Securities was renamed from ASC Securities in early 2022, after VPBank decided to acquire ASC with a charter capital of only VND56 billion. After the change of owner, the securities company has continuously increased its capital to VND269 billion in February, and then to VND8.92 trillion, becoming one of the leading securities companies in the industry. — VNS