Investment fund related to Everest Chairman registered to buy 5 million EVS shares

According to information from the Hanoi Stock Exchange (HNX), Vietnam Value Discovery Investment Fund (VVDIF2020), an organization related to Mr. Nguyen Hai Chau - Chairman of the Board of Directors of Everest Securities JSC (HNX: EVS) has registered to buy 5 million EVS shares. The transaction was conducted from September 21 to October 20 by negotiation and order matching.

The announcement also stated that the two members involved in the listed organization are Mr. Nguyen Hai Chau, who holds the position of Chairman of the Board of Directors of Everest Securities and Vice Chairman of the Board of Directors of VVDIF, and Mr. Vu Manh Tien, Vice Chairman of the Board of Directors of EVS and also Chairman of the Board of Directors of VVDIF.

According to research, Mr. Hai Chau currently holds more than 4 million EVS shares and Mr. Manh Tien owns 10 million shares, being major shareholders of EVS, accounting for 3.94% and 9.71% of charter capital respectively.

On the stock market, at the end of the trading session on September 20, EVS shares were priced at VND12,000/share, up 5.26%. Based on this market price, if the transaction is successful, VVDIF Investment Fund plans to spend VND60 billion for the above 5 million shares.

On the same day, the Hanoi Stock Exchange also announced its approval for Everest Securities to list an additional 61,800,218 shares after the company successfully issued shares to increase its equity capital since June 2023. Therefore, the total number of listed shares of the company is currently more than 164 million EVS shares, equivalent to VND 1,648 billion.

Completing the transaction, VVDIF Investment Fund will increase its ownership in Everest Securities from more than 2 million shares, equivalent to 1.22% to more than 7 million shares, equivalent to 4.2% according to the number of newly added shares. The purpose is to trade according to the plan to use capital obtained from the fund's charter capital increase.

Finance - Banking - Investment funds related to Everest Securities Chairman buys 5 million EVS shares — EVS stock performance over the past year (Source: Trading View).

Everest Securities, formerly known as Ocean Securities JSC, is a securities brokerage, securities trading, securities underwriting, and securities investment consulting company. The company has listed EVS shares since the end of June 2019 and currently has a charter capital of VND 1,030 billion.

Previously, the Board of Directors of Everest Securities approved a resolution to implement a plan to issue bonus shares to increase capital.

Specifically, EVS will issue bonus shares at a ratio of 10:6, shareholders owning 10 shares will receive 6 new shares, the issuance volume is more than 61.8 million shares. These bonus shares will not be subject to transfer restrictions. The expected issuance time is in 2023, after approval from the State Securities Commission.

The capital source for issuing shares to increase capital is taken from the entire surplus of equity capital of about VND 240 billion and a part of undistributed profit after tax as of December 31, 2022, about VND 378 billion.

Increasing equity capital from owners' equity is one of Everest Securities' business goals this year. This is also the content approved by EVS's 2023 Annual General Meeting of Shareholders held on April 27.

In a related development, at the end of May 2023, the Board of Directors of Everest Securities decided to withdraw the application to the State Securities Commission regarding the registration of offering more than 103 million shares to existing shareholders to double the charter capital, which was approved by the 2022 General Meeting of Shareholders.

According to the initial plan, the expected offering price is 10,000 VND/share. The expected proceeds from the offering are more than 1,030 billion VND, which will be used for margin lending, self-trading investment, securities underwriting and additional capital for purchasing and leasing fixed assets .

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