SHS plans significant capital increase with three issuance strategies

SHS plans significant capital increase with three issuance strategies

The deadline for the registration of all three issuance methods is set for April 25.

Traders work on a trading floor of SHS. — Photo courtesy of the company

Saigon - Hanoi Securities JSC (SHS) has announced plans to implement three capital-raising strategies to exceed VNĐ17 trillion (US$663.5 million) in registered capital.  

This initiative reflects SHS's commitment to expanding its operational scale and strengthening its competitive edge in Việt Nam’s dynamic financial market.

SHS's capital increase plan involves the issuance of over 894 million shares through three distinct methods: dividend distribution, equity increase from retained earnings and public offering.  

Specifically, the company will issue shares to shareholders as a dividend for the fiscal year 2023 at a rate of 5 per cent, while another share issuance will be carried out to increase capital from the owners' equity, also at a rate of 5 per cent. 

Additionally, SHS plans to offer shares to existing shareholders on a 1:1 basis at a price of VNĐ10,000 a share. The registration and payment period for this offering will run from May 7 to May 27. 

This public offering is expected to attract significant interest, as it allows shareholders an opportunity to increase their holdings at a favourable price.

The deadline for the registration of all three issuance methods is set for April 25. 

Upon completion of these transactions, SHS anticipates raising its charter capital from over VNĐ8.132 trillion to nearly VNĐ17.1 trillion, positioning itself among the top three securities companies in Việt Nam by charter capital.

In conjunction with its capital increase plans, SHS has set ambitious financial targets for 2025, aiming for revenue of nearly VNĐ2.52 trillion VND and a profit before tax of over VNĐ1.6 trillion, up 26 per cent and 29 per cent year-on-year, respectively. 

If these targets are met, they will represent the highest revenue and profit levels for SHS in the past four years.

The combination of capital raising and dividend distribution reflects SHS's strategic focus on financial stability and growth. 

With the inflow of new capital, the securities firm aims to enhance its service offerings, invest in technology and expand its core business areas.

This proactive approach not only strengthens its financial foundation but also positions the company to capitalise on opportunities arising from Việt Nam’s evolving stock market. 

Bizhub