A Hong Kong securities company is preparing to double its capital to nearly 1,400 billion.

After the successful issuance, the charter capital of Guotai Junan Securities Vietnam will increase to VND 1,387 billion, double the current level.

A Hong Kong securities company is preparing to double its capital to nearly 1,400 billion.

After the successful issuance, the charter capital of Guotai Junan Securities Vietnam will increase to VND 1,387 billion, double the current level.

Guotai Junan Vietnam Securities Joint Stock Company (IVS) has just been granted a certificate of registration for public offering of shares.  

Accordingly, Guotai Junan Vietnam Securities is allowed to offer to existing shareholders a total of 69.35 million shares. The total offering value calculated at par value is 693.5 billion VND.  

The distribution period takes place within 90 days from the effective date of the Certificate of Registration of Offering.  

Currently, Guotai Junan Securities has a charter capital of 693.5 billion VND. Thus, this securities company is about to double its charter capital to the current level. After a successful offering, the company's charter capital will reach 1,387 billion VND.  

This is the second capital increase issuance of this securities company after the most recent capital increase from VND 340 billion to VND 693.5 billion in 2019.  

Previously, the company's board of directors also planned to implement a capital increase plan by issuing additional shares in 2024. Accordingly, the capital raised from the offering will be used for a number of activities such as supplementing capital for margin lending activities, expanding the development of derivative products and supplementing capital to support investment banking activities.  

The resolution on the additional share offering that Guotai Junan Vietnam announced in April 2024 also stated that the expected offering price would be VND11,100/share. Compared to the time of the resolution, this price is lower than the market price of IVS on the market. However, currently, the price of IVS is in a downward trend with the market price below par value. At the end of the session on December 11, IVS closed at VND9,100/share.  

Currently, the majority of Guotai Junan Vietnam's operating revenue still comes from interest on loans and receivables. In the first 9 months of 2024, interest on loans and receivables brought in more than VND 26 billion for Guotai Junan Vietnam, equivalent to 46% of operating revenue, the rest mostly came from 2 profit segments from HTM and securities brokerage.  

In the first 3 quarters of the year, Guotai Junan Vietnam's profit hovered around 4-6 billion VND/quarter. Accumulated in the first 9 months of 2024, after-tax profit reached 15.6 billion VND, down 36% over the same period last year.  

As of the end of September 2024, Guotai Junan Vietnam's outstanding margin loans accounted for VND380.4 billion, up 15% compared to the beginning of the year and accounting for nearly 45% of the company's total assets.  

Currently, Guotai Junan Vietnam is owned by its parent company, Guotai Junan Securities (HongKong) Limited, with 50.97% of shares, while Dazhong International Co., Ltd. also holds more than 12.02% of the company. In mid-2024, Dazhong registered to sell 3 million IVS shares, but the transaction failed because the market price did not meet the expectation of recovering investment capital.  

Source: https://baodautu.vn/mot-cong-ty-chung-khoan-von-hongkong-chuan-bi-tang-von-gap-doi-len-gan-1400-ty-d232215.html