Nhat Viet Securities increases capital "lightning fast" thanks to Amber Holdings ecosystem

Since being acquired by Amber Holdings, Nhat Viet Securities has continuously increased its capital many times. This cash flow is mainly for self-trading to buy shares and bonds.

Established in October 2008 with a charter capital of VND 135 billion, Nhat Viet Securities (code VFS) started listing in 2020 with a charter capital of VND 410 billion and then increased its charter capital to VND 1,200 billion.

In fact, before listing on the HNX, although it was a securities company, Nhat Viet Securities mainly raised capital for self-trading investment, instead of adding capital for brokerage activities and margin trading.

In September 2008, the Company mobilized 65 billion VND, increasing its charter capital from 135 billion VND to 200 billion VND. Of the mobilized amount, the Company used 52 billion VND to buy bonds of AFG Vietnam JSC and Asia Vietnam Auto JSC, and the remaining 13 billion VND to supplement working capital.

The company made the second capital increase in September 2019, raising an additional VND 210 billion, raising its charter capital to VND 410 billion. Of which, the company used VND 120 billion to buy bonds of AFG Vietnam Investment JSC and Quang Anh Real Estate JSC; VND 10 billion to buy shares of Ngoc Thao Investment JSC; VND 80 billion to supplement capital for margin lending activities.

Up to the time before listing on the HNX (2020), Nhat Viet Securities had only one major shareholder, Mr. Tran Anh Thang, owning 8.44% of charter capital, the remaining 91.56% of charter capital belonged to the group of small shareholders owning less than 5% of charter capital.

Currently, Mr. Tran Anh Thang is the Permanent Vice Chairman of the Board of Directors and General Director of Nhat Viet Securities.

According to research, Mr. Tran Anh Thang is also a member of the Board of Directors of Amber Fund Management Joint Stock Company.

Rapid capital increase when transferred to Amber Holding group

In fact, Nhat Viet Securities only really increased its capital in 2017 when it was officially acquired by Amber Holdings Group, and Mr. Tran Anh Thang was appointed as Chairman in March 2017, and by May 2018, Mr. Tran Anh Viet held the additional position of General Director (later, the positions of General Director and Chairman of the Board of Directors had to be separated, Mr. Tran Anh Thang only held the position of General Director).

It is known that after listing in 2020, Nhat Viet Securities continued to promote the capital increase process and has undergone 2 major capital increases.

In the first time (2021), the Company increased its capital from VND 410 billion to VND 802.5 billion, offering an additional 39.25 million shares to raise VND 392.5 billion. By the end of 2021, the Company had used VND 245 billion to invest in bonds; VND 40.44 billion to invest in stocks; VND 100 billion to supplement capital for margin lending activities.

For the second time (2023), Nhat Viet Securities increased its charter capital from VND 802.5 billion to VND 1,200 billion, mobilizing VND 395.5 billion. Of which, by the end of 2023, the Company had disbursed VND 200 billion for bond investment and the remaining VND 197.5 billion was added to margin lending capital.

After increasing its capital to VND 1,200 billion, Nhat Viet Securities has 3 major shareholders, including Mr. Tran Anh Thang owning 13.01% of charter capital, Power Finance Joint Stock Company owning 10% of charter capital, Amber Holdings owning 7.33% of charter capital; the remaining 69.66% of charter capital belongs to the group of shareholders owning less than 5% of capital.

Entering 2024, Nhat Viet Securities continues its plan to offer shares at a ratio of 1:1 to existing shareholders to increase its charter capital from VND 1,200 billion to VND 2,400 billion. Of which, the Company is expected to use VND 600 billion to supplement its own capital and VND 600 billion to supplement capital for margin lending activities.

Assets mainly used for self-employment

When it was acquired by the Amber Holdings group, as of December 31, 2023, Nhat Viet Securities owned assets of VND 1,896.3 billion. Of which, VND 695.3 billion were loans, accounting for 36.7% of total assets; VND 600 billion were investments in unlisted bonds, accounting for 31.6% of total assets; VND 405.9 billion in cash, accounting for 21.4% of total assets (of which VND 350 billion was deposited at the major shareholder, Electricity Finance Joint Stock Company); VND 159.5 billion in financial investments recorded through profits/losses, accounting for 8.4% of total assets.

Although Nhat Viet Securities did not explain in detail the proprietary trading amounts, it is likely related to recapitalization for units in the Amber Holdings ecosystem, as this unit operates in all three major fields: finance, real estate, and energy. Of which, the two fields with large capital needs in the initial stages of project implementation are real estate and energy.

It is known that the leaders of Amber Holdings Group have many connections with the Electricity Finance Joint Stock Company. For example, Mr. Le Manh Linh is a member of the Board of Directors of the Electricity Finance Joint Stock Company, and is also the Chairman of Amber Capital Joint Stock Company and Chairman of Amber Fund Management Joint Stock Company.

Source