Securities companies race to increase capital:

Plan a large capital increase

Increasing capital will help securities companies increase their competitive position and expand their financial capacity. Photo: Trong Hieu

In early April 2025, the Annual General Meeting of Shareholders for the fiscal year 2024 of Rong Viet Securities Joint Stock Company (Rong Viet) approved the plan to issue a maximum of 77 million shares to increase charter capital to VND 3,200 billion in 2025. Specifically, in the first phase, Rong Viet will issue 24.3 million shares to pay dividends in 2024 and 4.7 million ESOP shares (shares issued to employees in the company), at a rate of 1.93%, at a price of VND 10,000/share. In the second phase, the company plans to privately offer a maximum of 48 million shares to strategic investors and professional securities investors. The proceeds will be used to supplement working capital for margin/advance trading, self-trading/underwriting, and participation in bond market activities.

The annual general meeting of shareholders of MB Securities Joint Stock Company (MBS) also approved a series of plans to issue shares to increase charter capital. MBS will issue a total of 94.5 million additional shares to increase charter capital from VND5,728 billion to VND6,673 billion through 3 plans. Of which, this enterprise will offer 68.7 million shares to existing shareholders at a price of VND10,000/share, the right exercise ratio is 100:12 (shareholders owning 1 share corresponds to 1 right, 100 rights can buy 12 new shares). The expected amount of money collected is more than VND687 billion.

MBS will issue nearly 17.2 million shares to existing shareholders to increase equity, the right exercise ratio is 100:3 (shareholders own 1 share corresponding to 1 right, 100 rights to receive 3 new shares). In addition, the company issues shares under the employee stock option program, the total number of shares issued is expected to be nearly 8.6 million units, the issue price is 10,000 VND/share. The total amount expected to be collected is more than 773 billion VND, mainly allocated to margin lending activities (623 billion VND), the rest to supplement capital for self-trading and underwriting (150 billion VND).

Also in the trend of increasing capital, the shareholders' meeting of BIDV Securities Joint Stock Company (BSC) approved the plan to issue shares to pay dividends. Accordingly, BSC plans to issue nearly 22.3 million new shares, corresponding to the right exercise rate of 10% (shareholders owning 100 shares on the record date will receive 10 new shares). After completing this issuance, BSC's charter capital is expected to increase from VND 2,230 billion to VND 2,453 billion. The main purpose of the capital increase is to supplement financial resources, serving the development needs of core business activities such as margin lending, proprietary trading and expanding the scale of operations.

Notably, VTG Securities Joint Stock Company (VTGS) initially planned to issue a huge amount of shares, up to 286.2 million shares to strategic investors and professional securities investors. However, VTGS later proposed a new plan to offer 289.8 million shares to existing shareholders in proportion to their ownership. If this plan is successfully implemented, the company's charter capital will increase to VND3,036 billion, about 22 times the current capital (VND138 billion). The total amount expected to be collected from this share offering is VND2,898 billion, which will be used for the main purpose of supplementing capital for securities trading activities and investing in upgrading the company's infrastructure and facilities. Similarly, many other securities companies also plan to increase capital.

Seize the opportunity

Nguyen The Minh, Director of Research and Development for Individual Clients (Yuanta Vietnam Securities Joint Stock Company), said that in this race, small-scale securities companies have a faster capital increase rate, mainly to increase their scale to compete with mid-sized securities companies. The capital increase of securities companies shows the trend of seizing opportunities from market upgrading, because when the market is upgraded, it will attract a large amount of foreign capital.

In addition, according to Circular No. 68/2024/TT-BTC, foreign institutional investors do not need to deposit 100% when trading to buy stocks. Therefore, securities companies must have capital to meet this need. Not to mention, in the near future, many businesses on the Upcom floor will switch to listing on the Ho Chi Minh City Stock Exchange. Accordingly, the liquidity scale and transaction value of the market will increase, and the demand for margin loans of domestic investors will increase.

The new information technology system on the stock market (KRX) has been put into operation, allowing the implementation of many financial products such as derivative contracts, intraday trading, etc., making the capital demand of securities companies to provide services to customers quite high. Opportunities in the stock market are increasing, so securities companies take advantage to find investment opportunities in the market.

Financial expert Nguyen Tri Hieu believes that in addition to anticipating market upgrades, securities companies may see the potential of Vietnam's economy when this year's GDP growth target is 8% or more and from 2026 at double digits, so they should increase capital to seize opportunities. Increasing capital will help securities companies increase their competitive position in the market and better take advantage of investment opportunities, expand financial capacity...

Source: https://hanoimoi.vn/cac-cong-ty-chung-khoan-chay-dua-tang-von-don-song-nang-hang-thi-truong-701784.html