DNSE Securities lists shares on HCMC bourse, aims at $3 bln capitalization

Hanoi-based DNSE Securities JSC officially listed its shares as DNE on the Ho Chi Minh Stock Exchange (HoSE) on Monday, targeting a capitalization of $3 billion in the next five years.

DNSE is the only securities company to conduct an initial public offering (IPO) and be approved for listing in the last five years.

On the first day of trading, DSE had a reference price of VND30,000 ($1.18) per share, equal to the initial public offering (IPO) price, with a fluctuation range of +/-20%. With more than 330 million DSE shares listed, the company’s capitalization reached VND9.9 trillion ($389 million).

Closing the Monday session, DSE lost 4.67% to VND28,600 ($1.12) per share.

DNSE Securities, formerly known as Dai Nam Securities, was established in 2007 with a charter capital of VND38 billion ($1.49 million), which now stands at VND3.3 trillion ($129.7 million).

Its chairman Nguyen Hoang Giang said the successful listing on the HoSE was a proud milestone for DNSE. The company was able to achieve its set plan just three years after changing its business model and perfecting the platform and infrastructure to meet listing requirements.

“This is a solid premise for DNSE’s next steps to make itself a leading technology securities company, bringing value to shareholders, customers and partners.”

Giang said the DNSE leadership will continue efforts to attract customers and gain market share by diversifying capital sources and providing more products and services with high technology content and personalization, meeting the needs of customers.

In the next five years, DNSE aims to have 5 million customers, a capitalization of VND72 trillion ($3 billion), and a profit of VND2.4 trillion ($100 million), he added.

This year, the brokerage house targets an after-tax profit range between VND170 billion ($6.72 million), down 20% year-on-year, and VND445 billion, double last year’s figure. Similarly, the range for its revenue target is between VND868-1,390 billion ($54.6 million), up 51% and 88% respectively.

In the first quarter of 2024, DNSE saw revenue and after-tax profit expand 21% and 78% year-on-year.

The company has continuously been a leader in the market of newly-opened accounts. In the first five months, it accounted for nearly 30% of the total number of new accounts opened in the entire market.

As of end-June, DNSE was managing nearly VND41 trillion ($1.61 billion), equivalent to 1.7 billion securities, growing more than 50% compared to the beginning of the year. The company's underlying securities trading value surged by 58% year-on-year in H1/2024.

DNSE expects to carry out nearly 2.4 million derivative contracts this year and, at the same time, set new records in terms of market share occupied. In Q1, it was named among the top 5 brokerages in Vietnam’s derivatives brokerage market share at 4.01%, and it plans on improving this further in Q2.