BIDV Securities Corporation (BSC - HoSE: BSI) has just announced the Board of Directors' Resolution approving the company's plan to sell treasury shares. Accordingly, BIDV Securities plans to sell all 505,660 BSI treasury shares by order-matching transactions on the floor.
The principle of determining the price required by the company is that the price of treasury shares will be greater than or equal to the reference price minus the sum of the reference price multiplied by 50% of the stock price fluctuation range. At the same time, the price will follow the market at the time of the transaction but not lower than VND 24,391/share.
The minimum sell order volume is from 3% and the maximum is 10% of the registered trading volume with the State Securities Commission, and this volume does not include the order cancellation volume and this regulation is waived when the remaining sell volume is less than 3%.
The transaction time is expected by BSC to be no more than 30 days from the date of commencement of the transaction. The company is offering for sale to increase working capital for business operations.
BSI stock performance over the past year (Source: Trading View).
If calculated according to the closing price on September 29, BSI shares still stopped at the reference price of VND41,300/share. With more than 500,000 shares sold, BSC expects to earn more than VND20.5 billion.
Previously, BSC also approved a resolution to issue 8,000 individual bonds with a face value of VND 100 million/bond, equivalent to a maximum total mobilized value of VND 800 billion. The issuance plan is expected to be divided into two phases, phase 1 in the third and fourth quarters of 2023 with a maximum value of VND 500 billion and the remaining phase in the fourth quarter of 2023. These are non-convertible bonds, without warrants and without guarantees; with a term of 1 year from the issuance date of each phase.
Regarding the purpose of issuing bonds, the company plans to use the entire amount raised to restructure debt, which is bank loans with a maximum term of 12 months.
Bonds can be repurchased before maturity by agreement or by force if the company violates the law on offering and trading corporate bonds.
Regarding BSC's business situation, in the first half of 2023, the company recorded operating revenue of VND 604 billion, a slight increase of 3% over the same period last year. Thanks to the reduction in FVTPL asset losses, BSC's 6-month after-tax profit was nearly 3 times higher than the same period in 2022, reaching VND 221 billion.
In 2023, BSC set a pre-tax profit target of VND 565 billion, 3.8 times higher than the results achieved in 2022, entering the top 10 stock brokerage market share on the HoSE. After 6 months, the company has achieved 49% of the profit target, but still cannot be named in the top 10 .
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