TCBS leads securities sector with 1.7 billion share issuance
TCBS leads securities sector with 1.7 billion share issuance
Techcom Securities JSC (TCBS) has successfully issued over 1.74 billion shares to existing shareholders at a 1:8 ratio, significantly boosting its charter capital.
The increase in capital was approved at TCBS’s 2024 Annual General Meeting. —Photo courtesy of the company |
The issuance, fully funded by retained earnings and share premium, utilised over VNĐ9.19 trillion (US$361.7 million) in share premiums and VNĐ8.24 trillion in undistributed profits after tax as of the end of 2023.
Notably, the newly issued shares have no transfer restrictions, enhancing liquidity for shareholders.
Following the issuance, TCBS's charter capital surged to over VNĐ19.61 trillion, with a total outstanding share count exceeding 1.96 billion.
This milestone positions TCBS ahead of SSI, though the lead may be short-lived as SSI plans to raise its charter capital to VNĐ19.64 trillion through the sale of 151.1 million shares.
The increase in capital was approved at TCBS’s 2024 Annual General Meeting.
A subsidiary of Techcombank, which holds a 94 per cent stake, TCBS continues to assert its financial dominance.
In the second quarter of 2023, the company issued 105 million shares at VNĐ97,542 per share, raising VNĐ10,242 billion. The entire issuance was acquired by Techcombank, increasing its stake from 88.7 per cent to 94 per cent.
The securities industry in Việt Nam is witnessing an intense race for capital expansion. Leading firms like VNDirect, Saigon - Hanoi Securities, Vietcap and Hồ Chí Minh City Securities Corporation are also raising funds through various means, including rights issues, private placements and stock dividends.
These efforts are driven by rising demand for margin trading and the introduction of Decree 68, effective November, which eliminates the 100 per cent margin deposit requirement for institutional foreign investors.
At the end of the third quarter, TCBS reported outstanding loans of nearly VNĐ25.5 trillion and achieved profit of nearly VNĐ1.1 trillion, the highest in the industry for the quarter. However, this marked a decline compared to both the previous quarter and the same period in 2023.
