Securities firms race to raise capital in anticipation of market upgrade

Securities firms race to raise capital in anticipation of market upgrade

With aims of bolstering their operational capabilities and expanding their footprint within the burgeoning financial ecosystem, several local securities firms are strategically planning substantial capital increases.

Traders work at DNSE's office. The securities firm could raise over VNĐ1.07 trillion from a share issuance. — Photo courtesy of the company

As Việt Nam's stock market is expected to be upgraded to emerging market status by September, a rush of activity is unfolding among local securities companies. 

With aims of bolstering their operational capabilities and expanding their footprint within the burgeoning financial ecosystem, several local securities firms are strategically planning substantial capital increases.

Industry insiders view this as a critical move to position themselves advantageously for the expected inflow of foreign investment, should the market upgrade materialise.

At its General Meeting of Shareholders held on March 19, DNSE Securities SJC outlined a plan to issue 85.65 million new shares for existing shareholders at a ratio of 4:1.

With a proposed minimum offer price of VNĐ12,500 per share, DNSE aims to raise over VNĐ1.07 trillion (US$41.3 million). This significant gain is intended to expand its operations and enhance its margin lending capabilities, a vital sector that is expected to grow as investor confidence surges with the market’s elevation.

Similarly, Việt Dragon Securities Corporation (VDSC) plans to raise its charter capital from VNĐ2.43 trillion to VNĐ3.2 trillion. The firm aims to issue a total of 77 million shares, with a portion reaching shareholders as dividends, while other shares will be made available in private placements.

Meanwhile, Việt First Securities Corporation (VFS) is set to offer 120 million new shares for existing shareholders at a valuation of VNĐ10,000 each. The funds raised from this issuance are allocated entirely for bolstering proprietary trading and margin loan activities, both essential services that, if enhanced, will cater to a broader spectrum of investors as market dynamics shift.

FPT Securities Corporation (FPTS) is also rapidly moving to capitalise on these opportunities, with plans to issue 30.5 million new shares with a ratio of 10:1 as part of its increasing capital strategy. 

Additional firms such as BIDV Securities (BSC) and SSI Securities Corporation have unveiled plans to increase their capital through a combination of dividend shares and private placements in the coming months. 

BSC, for instance, plans to issue over 22.3 million shares, intended primarily to support business development. The implementation timeline for the capital increase is set for 2025. If successfully completed, BSC will raise its charter capital from VNĐ2.23 trillion to over VNĐ2.45 trillion.

On the other hand, at its AGM, which is scheduled for April 18, SSI will present to its shareholders plans for continuing share offerings and issuances that date back to 2024.

SSI has confirmed the successful completion of its offering plan for existing shareholders in November 2024, raising its charter capital to over VNĐ19.6 trillion. The company is currently executing a share issuance plan through its Employee Stock Ownership Plan (ESOP) and has yet to initiate a private placement.

As such, SSI anticipates conducting a private placement in 2025-2026, with the resulting charter capital projected to nearly VNĐ20.8 trillion. 

Funds raised from this issuance will be directed toward enhancing capital for margin trading activities, underwriting operations and investments in instruments such as certificates of deposit and other securities. 

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