A series of "huge" capital increase plans are expected to be implemented by securities companies in 2025, in the context of the stock market expecting to receive positive information under long-term support factors.
A series of "huge" capital increase plans are expected to be implemented by securities companies in 2025, in the context of the stock market expecting to receive positive information under long-term support factors.
Ambition to increase huge capital of small securities companies
VTG Securities Corporation (VTGS) has just announced to collect shareholders' written opinions to approve the cancellation of the private share offering plan and approve the offering of shares to existing shareholders to increase charter capital.
Specifically, VTGS wants to cancel the private share offering plan approved by the General Meeting of Shareholders resolution in September 2024. This plan is to issue 286.2 million shares to strategic investors and professional securities investors.
Instead, VTGS wants to increase capital by offering 289.8 million shares to existing shareholders, equivalent to 21 times the number of existing shares (13.8 million shares). If the issuance is successful, VTGS's charter capital will skyrocket from VND138 billion to VND3,036 billion.
The total amount expected to be raised from this share offering is VND2,898 billion, which the company will use for two main purposes: to supplement capital for securities trading activities and to invest in upgrading the company's infrastructure and facilities. Of which, VND2,386 billion will be used for business activities, which will be largely allocated to margin activities (VND2,386 billion), VND400 billion for lending activities to advance sales proceeds, and VND100 billion to buy deposit certificates or save for liquidity.
VTGS has undergone many changes in recent times. At the end of 2024, the company has a new name, VTG Securities, from the old name, Viet Tin Securities, and moved its headquarters from Hanoi to Ho Chi Minh City at Ben Thanh Tower, 172-174 Ky Con Street, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City.
The financial report of this securities company recorded that, by the end of 2024, total assets were at VND 130 billion, mostly in cash and cash equivalents. VTGS does not make margin loans and only spends VND 10 billion on new held-to-maturity (HTM) investments in 2024. Currently, the company still has accumulated losses of VND 33.2 billion.
By the end of 2024, 49% of VTGS's capital was still owned by Minh Thanh Tourism JSC. Last year, there were two new shareholders, Tin Global Pte. Ltd (49%) and Ms. Nguyen Thi Thuy Trang (2%). These shares were bought back from two old shareholders, Ms. Hoang Ngan Ha (50%) and Mr. Nguyen Duc Viet (1%).
At another small securities company, Vietnam International Securities JSC (VISecurities), the upcoming plans are also similar to VTGS.
Accordingly, at the 2025 Annual General Meeting of Shareholders held on March 14, VISecurities shareholders approved the change of the company's name to OCBS Securities JSC, moving its headquarters from Hanoi to Ho Chi Minh City at The HallMark building, Tran Bach Dang Street, Thu Thiem Ward, Thu Duc City, Ho Chi Minh City. Along with that, the plan to offer up to 90 million shares to existing shareholders was also approved, thereby increasing capital by 900 billion VND instead of the previous plan to increase capital by 600 billion VND. VISecurities' current charter capital is 300 billion VND, if the capital increase is successful, the charter capital will increase 4 times to 1,200 billion VND.
The proceeds will be used to Improve financial capacity, mainly supplement capital for margin lending activities, increase brokerage market share, supplement capital for investment activities, securities trading and asset investment, develop infrastructure and technology services of VISecurities.
Recently, in February, Goutai Junan Vietnam Securities JSC (IVS) also successfully issued nearly 35.6 million shares to the public, raising its charter capital to VND1,049 billion.
According to the previous plan, IVS expected to increase its capital to nearly VND1,400 billion in the first quarter of 2025 through the offering of nearly 69.3 million shares. Most of the capital raised from the issuance will be used for margin lending, derivative product development and financial consulting.
Major securities firms continue to increase capital buffers
The information discussed at the 2025 Annual General Meeting of Shareholders is still being updated, showing that the trend of capital increase at securities companies will continue to be strong in 2025. Although not increasing capital many times as strongly as some small securities companies, large securities companies are not out of the race when continuing to supplement their capital buffer.
Dragon Viet Securities Corporation (VDSC) will submit to the 2025 Annual General Meeting of Shareholders a plan to issue 77 million shares to increase charter capital, through 2 phases. Phase 1 will issue 24.3 million dividend shares, 4.7 million ESOP shares. Phase 2 will be a private offering of up to 48 million shares. Along with that, VDS also wants to issue.
If successful, VDSC's charter capital is expected to increase from VND2,430 billion to VND3,200 billion. The proceeds will be used to supplement working capital for margin/advance trading, proprietary trading/underwriting, and participation in bond market activities.
In the conference document, VDSC's board of directors also made positive comments about the Vietnamese stock market. VDS said that with attractive valuations and potential for upgrading, the stock market is expected to bring many opportunities. Market liquidity is forecast to be flat in the first half of 2025 and increase again in the third quarter of 2025 when the upgrading story is activated. This securities company forecasts that the VN-Index will fluctuate between 1,220-1,486 points in the base scenario, with an average liquidity of VND22,000-24,000 billion/session.
The capital increase issuance plan will also be mentioned at the shareholders' meeting of FPT Securities Joint Stock Company (FTS) on April 1. Accordingly, FPTS will submit a plan to issue nearly 30.6 million shares to existing shareholders in the second and third quarters of 2025 and a plan to issue nearly 10 million ESOP shares, equivalent to a ratio of 2.9%. The total number of shares expected to be issued is about 40.6 million shares.
At ACB Securities Company (ACBS), the capital increase plan was approved by the parent bank ACB in early March. ACB decided to contribute VND1,000 billion to increase capital for ACBS, expected to be implemented after being approved by the Securities Commission. Previously, ACBS had continuously increased its capital, from VND3,000 billion to VND7,000 billion in the period of 2023 - 2024 and most recently increased its capital from VND7,000 billion to VND10,000 billion, approved in January 2025.
The successive capital increase plans proposed and implemented show that market members have positive expectations and are ready to prepare for new prospects, especially when the Vietnamese stock market is getting closer and closer to the goal of upgrading to emerging market status.
ACBS said that the addition of high-quality capital from the parent bank creates conditions for the company to make a breakthrough in 2025. In particular, the Vietnamese stock market is approaching the roadmap to be upgraded to an emerging market by FTSE and moving towards meeting MSCI's requirements. It is expected that the proportion of Vietnamese stocks will account for about 0.7 - 0.9% of the FTSE Secondary emerging market portfolio and Vietnam will attract capital flows of 300 - 400 million USD from ETF funds simulating the index.
Source: https://baodautu.vn/cong-ty-chung-khoan-cap-tap-tang-von-don-nang-hang-d255077.html
Comment (0)