Boom expectant securities firms rush to hike capital base

Many Vietnamese securities companies are rushing to increase their charter capital, anticipating a promising long-term outlook for the stock market.

MB Securities (MBS), listed on the Ho Chi Minh Stock Exchange as MBS, has completed the issuance of nearly 110 million shares through a rights issue, raising its charter capital to VND5.47 trillion ($215.2 million) from VND4.37 trillion ($172 million) as of September. The move aims to expand its margin lending capacity and overall business operations.

MBS is currently offering 25.7 million shares to four professional stock investors at VND23,040 ($0.9) per share, which is expected to further increase its capital base to VND5.72 trillion ($225.3 million).

Ho Chi Minh City Securities JSC (HoSE: HCM) also plans to conduct a rights issue of nearly 360 million shares at VND10,000 ($0.39) each.

The issuance will push up the firm’s charter capital by VND3.6 trillion ($141.6 million) to VND10.8 trillion ($424.8 million), thereby enhancing its margin lending capacity and ability to expand business operations.

SSI Securities (HoSE: SSI) has completed the offering of 151 million shares through a rights issue at VND15,000 ($0.6) apiece, generating VND2.26 trillion ($89.2 million). The proceeds will be used to invest in certificates of deposit and margin lending.

In addition, the recent completion of a 302.2 million bonus share issuance has raised SSI’s capital base to VND19.62 trillion ($771.8 million).

Techcombank Securities has also increased its charter capital from VND2.17 trillion ($85.7 million) to VND19.6 trillion ($771.59 million) by issuing over 1.7 billion shares from retained earnings and surplus equity.

Vietcap Securities (HoSE: VCI) has raised VND4 trillion ($157.3 million) by issuing 143.63 million shares through a private placement at VND28,000 ($1.1) per share. As a result, its charter capital grew from VND5.7 trillion ($225.97 million) to VND7.18 trillion ($282.5 million).

The short-term stock market appears to be impacted by exchange rate tensions and persistent foreign net selling. However, in the long term, several supportive factors are in play, including a gradually improving macroeconomic environment, a global wave of interest rate cuts and the anticipated upgrade of the stock market in line with the government’s 2025 target.

As a result, increasing capital not only provides new resources but also allows securities companies more flexibility to expand their lending limits and market shares.