SSI to expand business to derivative securities

SSI to expand business to derivative securities

Shareholders of the Saigon Securities Inc. (SSI) approved yesterday on the company's expanding its operation into the derivative securities business.

Last May the Government issued Decree 42/2015/ND-CP on derivative securities and derivative securities market and under the Circular released by the Ministry of Finance in January regulates that a securities company must obtain an approval from its general shareholder meting to carry out derivative securities trading operations.

The company will also issue covered warrant once legal regulations take effect.

The meeting also agreed on this year's target of VND1,430 billion (US$64 million) in revenue, which is expected to yield VND950 billion in pre-tax profits.

Last year's revenue was VND1,333 billion and pre-tax profit, VND1,064 billion.

The company ranked the first in market share in both exchanges in HCM City and Hà Nội, with a combined share of 12.13 per cent, up 10.4 per cent over 2014.

Chairman Nguyen Duy Hưng stressed the success of his company's investment bank service, including the consultancy for property developer Novaland to mobilise VND1,000 billion, Digiworld to raise VND250 billion and for the deal of Quang Ngai Sugar Company to sell almost VNĐ300 billion to foreign investors. This investment bank service brought in a revenue of VND57 billion, up 125 per cent from 2014's figure.

Its SSI Assets Management Company was the first domestic one having raised funds from European institutional investors for establishing the Andbank Investment SIF – Vietnam Value and Income Portfolio.

It also raised US$32 million in the first phase in cooperation with its Japanese partner Daiwa for the DAIWA-SSIAM Vietnam Growth Fund II LP, which focueses its investments in private companies operating in areas of agriculturre, aquaculture and consumer goods.

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