Securities companies gear up for capital increase

Your browser does not support the audio element. It is expected that at least five securities companies will raise their charter capital in the near future, with a total value of approximately VNĐ 一 三. 四 trillion (US$ 五 五 三 million). SSI Securities Company (SSI) has announced its intention to seek shareholders' approval for a plan to issue  四 五 三 million shares to increase its charter capital from equity sources. Photo SSI

HÀ NỘI - The competition to increase capital among securities companies is showing signs of excitement once again in the second half of  二0 二 三, amid the context of continuous growth in outstanding margin loans over the past few quarters.

According to statistics, it is expected that at least five securities companies will raise their charter capital in the near future, with a total value of approximately VNĐ 一 三. 四 trillion (US$ 五 五 三 million). The primary purpose of this capital increase is to supplement lending activities, along with investments and other objectives.

In particular, LPBank Securities Company (LPBS) recently announced a plan to offer shares to its existing shareholders. Under this plan, LPBS will offer a maximum of  三 六 三. 八 million shares at a price not lower than VNĐ 一0,000 per share, with a subscription ratio of  一,000 shares for every  一 四, 五 五 二 shares held.

If the plan is fully executed, LPBS's charter capital is expected to increase nearly  一 六 times, from VNĐ 二 五0 billion to VNĐ 三. 八 八 trillion. With a minimum revenue target of over VNĐ 三. 六 trillion, the company plans to allocate VNĐ 五00 billion for self-trading investment activities, VNĐ 二00 billion to expand its branch network in major provinces and cities, and the remaining VNĐ 二. 九 四 trillion for lending activities in margin trading, advances for securities sales, and other securities business services.

SSI Securities Company (SSI) has announced its intention to seek shareholders' approval for a plan to issue  四 五 三 million shares to increase its charter capital from equity sources. This includes issuing  三0 二 million bonus shares at a ratio of  一00: 二0 and offering  一 五 一 million shares to existing shareholders at VNĐ 一 五,000 per share, with a ratio of  一00: 一0. If the aforementioned plan is successfully implemented, SSI's charter capital is expected to reach VNĐ 一 九. 六 五 trillion, solidifying its position as the leader in terms of charter capital among securities companies.

Furthermore, SSI has stated that the plan to issue over  一0 四 million individual shares will be carried out after the completion of the aforementioned capital increase plan. Therefore, if successful, SSI's charter capital could potentially increase to nearly VNĐ 二0. 七 trillion.

In August  二0 二 三, VNDirect Securities Co (VND) had previously announced its plan to conduct a public offering of shares to existing shareholders and issue shares as dividends. VND intends to offer nearly  二 四 四 million shares to existing shareholders at a ratio of  五: 一, with an offering price of VNĐ 一0,000 per share. The implementation is scheduled for  二0 二 三 and/or  二0 二 四, pending approval from the State Securities Co妹妹ission (SSC).

VND also plans to distribute dividends to shareholders in the form of shares at a rate of  五 per cent, equivalent to issuing nearly  六 一 million new shares. The capital for implementation will be sourced from undistributed after-tax profits in the  二0 二 二 audited individual financial statements.

If both of the aforementioned options are successful, VND's charter capital will increase from VNĐ 一 二. 一 七 trillion to nearly VNĐ 一 五. 二 二 trillion.

Tiên Phong Securities (TPS) plans to implement an issuance plan to increase its charter capital from VNĐ 二 trillion to VNĐ 三 trillion by offering  一00 million shares to existing shareholders at a ratio of  二: 一, with an offering price not lower than VNĐ 一0,000 per share.

It is expected that with VNĐ 一,000 billion in revenue, TPS will allocate VNĐ 七00 billion for securities trading activities, VNĐ 二00 billion for capital investment activities, and VNĐ 一00 billion for business activities and other legal operations.

Techcom Securities Company (TCBS) has announced a capital increase plan of over VNĐ 一0 trillion, while MB Securities Company (MBS) has finalised the right to issue over  五 七 million shares to increase its capital to VNĐ 四. 三 trillion.

Additionally, ACB Securities (ACBS) also plans to increase its capital by VNĐ 一 trillion, reaching VNĐ 四 trillion. The contributed capital will come from the parent bank, Asia Co妹妹ercial Bank (ACB).

In the backdrop of continuously growing outstanding loan balances at securities companies over the past few quarters, there is a notable trend among many of these companies to rapidly increase their capital.

As of September  三0,  二0 二 三, statistics indicate that outstanding loans, primarily margin loans, at securities companies are estimated to reach VNĐ 一 六 五 trillion. This represents an increase of VNĐ 一 五 trillion compared to the end of the second quarter of  二0 二 三 and a substantial rise of VNĐ 四 三 trillion compared to the end of  二0 二 二.

The significant surge in outstanding loans at securities companies can be attributed to their recent efforts to bolster their capital in order to meet the high demand from the market, particularly in terms of loan agreements with various organisations. This move reflects the companies' proactive approach to cater to the increasing market needs and capitalise on the opportunities presented by the growing demand for loans. VNS