DNSE Securities to go public by end-June: exec

Hanoi-based DNSE Securities JSC will have its shares listed on the Ho Chi Minh Stock Exchange (HoSE) in June this year at the latest, a company executive has confirmed.

The bourse is reviewing the firm’s application, chief financial officer Nguyen Ha Ninh said at the firm’s AGM on Tuesday.

DNSE will float its entire 330 million outstanding shares at a starting price of VND30,000 ($1.19) each, giving it a price tag of VND9.9 trillion ($391.5 million), according to the firm’s AGM documents.

Shareholders approved a plan to make transactions with three major stakeholders, namely Encapital Financial Technology, Encapital Holdings JSC, Finland’s Pyn Elite Fund and other parties including Enpay Payment JSC, Winvest Services and Investment Corporation, WiGroup JSC, and Ahaslides Vietnam Company Limited.

The brokerage house targets to earn an after-tax profit of between VND170 billion ($6.72 million) and VND445 billion this year. Revenues are projected at VND868-1,390 billion.

The firm earned an after-tax profit of VND229 billion ($9 million) on operating revenues of VND714.5 billion in 2023, up 194% and 58% year-on-year, respectively, according to its audited financial statements.

For Q1 this year, DNSE earned an after-tax profit of VND70 billion ($2.77 million), up 46.7% year-on-year, said CFO Ninh.

Shareholders approved a plan to spend VND165 billion ($6.52 million) on a cash dividend of VND500 a share. This is the second consecutive year the firm plans a cash dividend payout.

DNSE also plans to issue 9.3 million ESOP shares and VND1 trillion ($39.54 million) worth of 36-month bonds. The time frames were not specified.

The company has no plans to issue new shares to its existing shareholders for now as it counts with partners willing to provide finances and an equity of VND4,400 billion ($174 million), said chairman Nguyen Hoang Giang.

Regarding recent ransomware attacks on VNDirect Securities, one of the top brokers on the HoSE, Giang shared that the company had worked with its partners to enhance its cybersecurity, particular data protection.

“In case DNSE is under attacks, its systems can recover within four to eight hours,” Giang noted.

Regarding its readiness to connect with the HoSE’s new trading platform provided by the Korea Exchange (KRX), CEO Pham Thi Thanh Hoa said that DNSE had passed the rehearsals and was ready to go live.