This year, many securities companies, from small to large, simultaneously issued shares to increase capital. Most of the capital mobilization purposes are to supplement operating resources, including promoting margin lending.
For example, at the 2024 Annual General Meeting of Shareholders held 2 days ago, the Board of Directors of VIX Securities Company presented to shareholders a plan to issue nearly 790 million shares to increase charter capital to VND 14,952 billion, 2.2 times higher than the current level. Specifically, VIX plans to issue 66.9 million shares to pay dividends in 2023 at a rate of 10%; issue bonus shares at a rate of 10%, equivalent to 66.9 million shares and offer additional shares to existing shareholders with a quantity of 635.97 million shares at a price of VND 10,000/share... The mobilized capital of nearly VND 6,360 billion is expected to be used to supplement capital for self-trading and margin activities.
Securities companies rush to issue shares to increase capital and boost margin.
Or the company leading in securities brokerage market share, VPS Securities Company, plans to implement core business growth solutions this year, expand its customer network, research new products and services, risk management solutions... In particular, VPS plans to increase its charter capital by issuing 18.8 million shares to existing shareholders. If completed, VPS's charter capital will increase from the current VND5,700 billion to VND5,888 billion. The amount mobilized of more than VND188 billion will be used to supplement charter capital and increase financial capacity.
Similarly, the "big guy" in terms of capital, SSI Securities Company, also submitted to the General Meeting of Shareholders a plan to issue ESOP shares in 2024, continuing to implement the plan to offer and issue shares that had been approved in 2023. Specifically, at the end of December 2023, SSI shareholders approved two capital increase plans including issuing more than 302.2 million bonus shares to increase capital, at a ratio of 100:20 and offering more than 151 million shares to existing shareholders at a price of VND 15,000/share at a ratio of 100:10. In total, SSI will issue more than 453.3 million new shares, increasing its charter capital from more than VND 15,111 billion to nearly VND 19,645 billion. If successfully implemented, SSI will continue to hold the leading position in terms of capital in the group of securities companies.
Meanwhile, Vietnam Financial Investment Securities Company (VISC) also proposed a plan to issue 50 million shares privately at VND10,000/share to raise VND500 billion. This capital will be used to supplement margin trading (VND400-450 billion) and self-trading (VND50-100 billion). Explaining to shareholders, Mr. Duong Quang Trung, General Director: Increasing capital for the company is really necessary. Firstly, it is related to capital for margin trading activities. Secondly, increasing capital to add derivative securities trading services. With low capital, it will definitely not be able to operate. Therefore, increasing capital is very necessary. Currently, VISC Securities has a charter capital of VND451 billion.
KB Vietnam Securities Company will also present to shareholders at the upcoming 2024 annual meeting a plan to issue more than 3.03 million shares to existing shareholders to increase charter capital from equity in 2024. The right exercise ratio is 99.04:1 (shareholders owning 99.04 shares will be entitled to 1 share purchase right). If the issuance is successful, KB Vietnam's charter capital will increase by VND30.3 billion to nearly VND3,032 billion. The proceeds from the issuance will be used to supplement margin trading activities.
Another securities company, Rong Viet, will also issue shares to increase its charter capital to VND3,240 billion this year. Accordingly, Rong Viet plans to issue shares to pay dividends at a rate of 11.5%, issue 8.85 million ESOP shares and offer 81 million shares privately. The capital increase is aimed at improving financial capacity and supplementing capital sources to meet the company's needs for expansion and business development.
Source: https://thanhnien.vn/cong-ty-chung-khoan-chay-dua-phat-hanh-co-phieu-de-them-tien-cho-vay-margin-185240414145514632.htm
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