HSC's extraordinary general meeting of shareholders voted to approve the plan to offer nearly 360 million shares to existing shareholders, accordingly, shareholders owning 2 shares have the right to buy 1 new share.
HSC voted to approve the plan to offer nearly 360 million shares
HSC's extraordinary general meeting of shareholders voted to approve the plan to offer nearly 360 million shares to existing shareholders, accordingly, shareholders owning 2 shares have the right to buy 1 new share.
At the extraordinary shareholders' meeting held this afternoon (December 4), Mr. Trinh Hoai Giang, General Director of Ho Chi Minh City Securities Corporation (HSC), said that the reason HSC convened an extraordinary shareholders' meeting this December instead of waiting until April 2025 to seek opinions on the plan to issue shares to increase capital is because this is an urgent issue for HSC.
“HSC has lent at a loan/equity ratio of nearly 2 times, almost reaching the legal ceiling, and although the market is not strong, investors' demand for loans is very high and if there is an upcoming market increase, HSC must be ready to provide capital,” said Mr. Giang.
The second reason, according to Mr. Giang, is to increase capital to provide services for foreign investors to trade on margin. Currently, no investor has violated payment, but HSC needs to have room so that if for some technical reason, a foreign investor is late in payment, the company has enough capacity to handle it.
Commenting on the market in the coming time, Mr. Giang said that the average transaction value will be low, not as high as before because foreign investors have net sold nearly 4 billion USD, the highest ever.
Next year, liquidity is expected to drop to around VND15,000 billion/session compared to VND20,000 billion/session this year. Margin lending demand has not exploded but is still high. HSC is ready to lend margin even when demand is weak and demand is strong because HSC's clients are very professional and are not afraid when the market fluctuates strongly. If for some reason the market fluctuates sharply, clients can sell derivative contracts to hedge risks instead of selling underlying securities.
Responding to a shareholder's concern about the long capital increase time of HSC due to procedural difficulties of the state shareholder, Ho Chi Minh City State Financial Investment Company (HFIC), Mr. Johan Nyvene, Chairman of the Board of Directors of HSC, said: "HSC's recent capital increase took 1 year, which is half the time compared to the previous capital increase. Although 1 year is still a long time, the members of the Board of Directors of HSC, including the representative of HFIC, have experience in the work needed to complete the procedures. We are ready to knock on the doors of the agencies that need to ask for opinions to carry out the necessary procedures and we have the support of HFIC's leaders and the People's Committee of Ho Chi Minh City, so we hope that the upcoming capital increase will shorten the implementation time even more."
HSC's extraordinary general meeting of shareholders voted to approve the plan to offer nearly 360 million shares to existing shareholders, according to which, shareholders owning 2 shares have the right to buy 1 new share. Thus, HSC will mobilize 3,600 billion VND, increasing its charter capital to 10,800 billion VND.
The mobilized capital is expected to be allocated to margin lending and proprietary trading activities. Specifically, about 70% (equivalent to VND 2,500 billion) will be used to expand margin lending activities, the remaining 30% (equivalent to VND 1,100 billion) will supplement proprietary trading activities.
According to statistics, HSC is a securities company with a loan/equity ratio close to the limit of 200% equity, the highest in the market.
As of September 30, HSC's outstanding margin loans amounted to VND19,286 billion, a sharp increase of 60% compared to the beginning of the year on equity of more than VND10,056 billion.
In previous years, HSC's brokerage market share on HoSE has continuously decreased from over 12% in 2016 to 6.7% in 2021 and continued to decrease in 2022 due to lack of capital and banks cutting credit limits. In 2023, after successfully increasing capital, HSC has continuously increased its market share. By the end of Q4/2024, HSC expects its market share to reach 7% on HoSE compared to 6% in Q3.
Source: https://baodautu.vn/hsc-bieu-quyet-thong-qua-ke-hoach-chao-ban-gan-360-trieu-co-phieu-d231697.html
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