"Stars change" in the top securities companies with the largest capital

Over the years, the position of the top 1 securities company in terms of charter capital has continuously changed. Most recently, VNDIRECT Securities Company (code VND) has just completed the issuance of more than 304 million new shares through two options. The company offered nearly 244 million shares to existing shareholders at a ratio of 5:1 and distributed dividends to shareholders in shares at a rate of 5%. The remaining 9.5 million shares that were not sold out, VNDIRECT continued to distribute to other investors at an issuance price of VND 10,000/share.

After the issuance, the number of shares of VNDIRECT increased to 1.52 billion units, equivalent to a charter capital of nearly VND 15,223 billion. VNDIRECT thereby regained the position of the securities company with the largest charter capital in the market from SSI (VND 15,111 billion).

At the 2024 Annual General Meeting of Shareholders held at the end of June, VNDIRECT continued to approve two capital increase plans: private placement and ESOP issuance. If completed, the company will increase its charter capital to over VND18,300 billion.

In contrast to VNDIRECT's continuous capital increase roadmap (increasing nearly 7 times after 6 years), SSI is slower (increasing more than 4 times after 9 years). 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. After this issuance, SSI's charter capital is expected to increase from more than VND 15,111 billion to nearly VND 19,645 billion. If the plan is successful, SSI will again consolidate its No. 1 position in terms of capital in the group of securities companies.

Not only at the top, the heat of the capital increase race is also in other companies. Typically, VIX Securities Company (code VIX) has just been granted a certificate of registration for public offering of shares by the State Securities Commission on July 15, 2024. If all 4 options are successfully implemented, VIX will increase its charter capital from VND 6,694 billion to nearly VND 14,600 billion. Or Saigon - Hanoi Securities Company (code SHS) has a plan to increase its charter capital by a maximum of VND 8,994 billion to VND 17,126 billion.

In contrast, the capital increase process of foreign securities companies has slowed down in the past two years, along with business growth gradually falling behind that of domestic companies.

Capital increase plans mostly come from large-scale domestic securities companies as well as companies affiliated with banks. Photo: VIS Ratings

According to VIS Ratings, with additional capital, companies can boost their core businesses of investment and margin lending in 2024. Higher profit growth from these businesses will help companies strengthen their risk buffers.

Low interest rates and improved investor sentiment in the stock and corporate bond markets will encourage investor trading activity, while the regulator’s plans to upgrade trading infrastructure and remove pre-trade margin requirements for foreign investors will help attract new investors over time.

Source: https://laodong.vn/kinh-doanh/sao-doi-ngoi-trong-top-cong-ty-chung-khoan-co-von-lon-nhat-1367819.ldo