DNSE lists on HSX with valuation at nearly $390 million
DNSE lists on HSX with valuation at nearly $390 million
DNSE Securities went public on the Ho Chi Minh City Stock Exchange (HSX) with 330 million shares on July 1, and hit a company valuation of nearly VND10 trillion ($392.8 million).
HSX announced that it had granted the decision for listing and the commencement of trading of DSE shares to DNSE Securities.
DNSE is the only securities firm to issue an initial public offering (IPO) and gain approval for listing in the past five years. Along with DNSE, there are 16 securities firms listed on the HSX, Vietnam's largest stock exchange.
On the first day of trading, the reference price of DSE shares was VND30,000 ($1.18) apiece, equal to the initial public offering (IPO) price, with a fluctuation range of +/-20 per cent. With more than 330 million DSE shares listed, the company achieved a capitalisation of $388.9 million on its HSX debut.
DNSE Securities, formerly Dai Nam Securities, was founded in 2007 with a charter capital of VND38 billion, which has grown 86.8 times to reach $129.4 million today.
Before the IPO, the company increased its charter capital from to $117.6 million in May 2022. The firm raised its charter capital to $129.4 million after a successful IPO of 30 million shares.
In January 2024, the Finnish investment fund PYN Elite finalised its acquisition of a 12 per cent stake in DNSE.
Following the official listing on the HSX, DNSE Securities has realised its strategy to scale up its business. Meanwhile, the move also paves the way for the securities firm to raise funds from major local and international investors quickly and effectively, boosting transparency and reputation, thereby promoting strong growth in the future.
Nguyen Hoang Giang, chairman of the Board of Directors at DNSE Securities said, “The successful listing on the HSX marks a proud milestone for the DNSE team. DNSE has achieved its plan within three years of changing its model, completing the platform and infrastructure, and achieving the growth steps to meet the requirements for being listed on the HSX.”
DNSE's leaders will continue its strategy to attract customers and increase market share by diversifying its capital resources, supplying products and services with high technology content, and personalisation.
The company attributes its revenue and profit growth to its unique product portfolio, which is taking a lead in the market with diverse margin loan packages and virtual brokers providing quick information. The company also offers a diverse customer development network through API connections with financial partners such as ZaloPay or social network channels like Bull and Bear.
After the capital increase via the IPO and listing, in the next five years, DNSE aims to achieve five million customers, a capitalisation of $2.8 billion, and a profit of $94 million.
In the first quarter of 2024, DNSE posted a 21 per cent rise in revenue and 78 per cent in after-tax profits compared to the same period last year. Meanwhile, DNSE constantly tops the market in terms of new account openings. In the first five months of 2024, DNSE accounted for 30 per cent of the total new account openings in the market.
As of the end of June, DNSE was managing nearly $1.61 billion, equal to 1.7 billion securities, up more than 50 per cent compared to the beginning of the year. In the first six months of 2024, the trading value of DNSE's underlying securities grew by 58 per cent over the same period last year.
Regarding derivative transactions, in 2024, DNSE carried out nearly 2.4 million derivative contracts and continuously set new records in terms of market share. Accordingly, DNSE ranked in the top five derivatives brokerage firms in terms of market share in the first quarter of 2024 (4.01 per cent), and is expected to continue to climb the rankings in the second quarter of 2024.
Given the many driving forces for development in the stock market in 2024, along with the unique, flexible strategies and prospects of the technology securities model, DSE shares are expected to bring growth opportunities and sustainable, long-term value for domestic and foreign investors.
