Daiwa Securities-backed SSI to reclaim Vietnam’s biggest securities firm position after new public offering

SSI Securities, invested by Tokyo-based Daiwa Securities Group, has been approved to make a public offering of 453.3 million shares in a move likely to see it reclaim from VNDirect its position as Vietnam’s biggest stock broker by charter capital.

Of the total, 303.2 million shares will be issued via equity financing at a rate of 20%, and 151.5 million will be offered via a rights issue at a rate of 10%.

After the issuance, SSI Securities is expected to raise its charter capital to VND19.64 trillion ($785.76 million) from VND15.11 trillion ($607.6 million).

At present, VNDirect dominates Vietnam’s securities business in terms of charter capital at VND15.22 trillion ($612 million).

SSI, in which Daiwa Securities has a 15.46% stake, also plans to hike its charter capital to VND20.6 trillion ($828.3 million) by issuing 104 million shares via a private placement at VND15,000 ($0.6) apiece.

The broker completed the issuance of 20 million shares via its 2023-2024 employee stock ownership plan (ESOP) in April.

With the rights issue to existing shareholders, SSI is expected to bring in VND2.26 trillion ($91.07 million) to invest in certificates of deposit and margin lending.

As of end-June, SSI Securities’ outstanding margin loans reached VND20.38 trillion ($819.6 million), rising by VND5 trillion ($201 million) from the start of 2024, equivalent to 82% of its owner’s equity.

The company’s investment portfolio was valued at VND40.16 trillion ($1.6 billion), including VND1.27 trillion ($51 million) in listed stocks and other securities; VND771 billion ($31 million) in covered warrants; VND179 billion ($7.2 million) in unlisted stocks and fund certificates; nearly VND15 trillion ($603.1 million) in bonds; and VND23.3 trillion ($936.8 million) in certificates of deposit.

In the first half of 2024, SSI Securities earned a net profit of VND1.6 trillion ($64.86 million) on revenue of VND4.28 trillion ($172 million), up 51% and 35% year-on-year, respectively.

SSI shares, listed on the Ho Chi Minh Stock Exchange under ticker SSI, closed down 0.74% at VND37,700 ($1.52) on Friday.