HSC Securities plans to offer shares to shareholders, raising 3,600 billion VND

HSC offered nearly 360 million shares at VND10,000/share. This securities company plans to increase the total number of shares to nearly 1.08 billion units, corresponding to a charter capital of VND10,800 billion.

HSC Securities plans to offer shares to shareholders, raising 3,600 billion VND

HSC offered nearly 360 million shares at VND10,000/share. This securities company plans to increase the total number of shares to nearly 1.08 billion units, corresponding to a charter capital of VND10,800 billion.

HSC Securities has just completed the capital increase in early June 2024

Ho Chi Minh City Securities Corporation (HSC, code HCM - HoSE) announced the documents for the 2024 Extraordinary General Meeting of Shareholders. The meeting is scheduled to be held at 2:00 p.m. on December 4, 2024 online.

According to the meeting documents, the company will submit to shareholders for approval a plan to issue shares to existing shareholders. Specifically, HSC plans to offer nearly 360 million shares at a rate of 50%, corresponding to a rights exercise ratio of 2:1. Accordingly, shareholders owning 1 share on the record date will be entitled to 1 purchase right, and for every 2 purchase rights, they will be entitled to buy 1 new share.

The purpose of this offering is to increase the scale of working capital, expand the capacity of margin lending and supplement capital for business operations. The expected offering price is equal to the par value of VND10,000/share. On the stock market, HCM's share price closed on November 8 at VND29,100/share, an increase of 28% compared to the end of last year and 2.9 times the offering price.

The expected offering date is 2025, after approval by the State Securities Commission. If completed, HSC will increase the total number of shares to nearly 1.08 billion units, equivalent to a charter capital of VND10,800 billion. The expected amount of money collected from the offering is nearly VND3,600 billion. The company plans to allocate nearly VND2,520 billion (70%) to supplement capital for margin lending activities and nearly VND1,080 billion (30%) to supplement capital for proprietary trading activities.

Previously, HSC completed a capital increase issuance in early June 2024. Accordingly, the company also offered shares to existing shareholders at a ratio of 2:1. As a result, the company distributed more than 178 million shares, equivalent to 77.94% of the total number of shares offered. The charter capital after this offering increased from VND 5,266 billion to VND 7,048 billion.

HSC then issued 16 million shares under its employee stock option plan (ESOP), equivalent to 2.27% of the total outstanding shares at VND10,000/share. ESOP shares can only be transferred at 40% of the total issued shares after 12 months, 30% after 24 months and 30% after 36 months.

HSC used to be the second largest brokerage market share on the HoSE before 2021. However, the company has lost market share due to the strong rise of many other units and in the most recent quarter (III/2024), HSC's brokerage market share was only in 5th place with 6.65%.

At the 2024 Annual General Meeting of Shareholders, Mr. Trinh Hoai Giang, General Director of HSC Securities, said that the brokerage market share of individual investors has decreased sharply because the company does not have enough capital. HSC's capital increase process is slow, such as the most recent capital increase took nearly 2 years to complete and put the capital increase money into use.

Regarding business performance, in the first 9 months of 2024, HSC recorded operating revenue of VND 3,095 billion, up 51.6% over the same period last year. Pre-tax profit reached VND 1,011 billion, up 64% over the same period in 2023, completing 70% of the 2024 plan.

As of September 30, 2024, HSC's total assets reached VND 32,715 billion (equivalent to USD 1.3 billion), an increase of 83% compared to the beginning of the year. Of which, the value of assets recorded through profit/loss (FVTPL) was VND 8,701 billion, nearly 4 times higher than the beginning of the year. Mostly due to the company increasing investment in bonds of BIDV (over VND 4,000 billion) and Military Bank (over VND 1,100 billion). The company's outstanding loans at the end of the third quarter of 2024 reached VND 19,286 billion, an increase of 59% compared to the beginning of the year.

The previous capital increase in early June 2024 significantly increased HSC's financial capacity. At the same time, the company also took advantage of financial leverage. The debt-to-capital ratio is currently at 69.26%, only lower than the second half of 2021.

Source: https://baodautu.vn/chung-khoan-hsc-tinh-chao-ban-co-phieu-cho-co-dong-huy-dong-3600-ty-dong-d229585.html