Eight-fold capital base hike to make Techcombank Securities top broker in Vietnam

Hanoi-based Techcombank Securities JSC (TCBS) is seeking approval from shareholders for resuming a plan to boost its charter capital eight-fold to VND19,613 billion ($797 million).

If successful, TCBS will overtake VNDirect Securities (HoSE: VND), whose capital base was raised to VND15,223 billion ($618.6 million) in July from the previous VND12,178 billion, to become the largest securities company in Vietnam by charter capital.

For the capital hike, TCBS plans to issue 1.74 billion shares at a 1-for-8 ratio, meaning that existing shareholders will receive eight new shares for every one share they own, the firm said in a document sent to shareholders for approval.

The capital will come from share premium worth VND9,192 billion ($373.5 million) and undistributed earnings worth VND8,242 billion, the document specified.

After the move, foreign ownership in the broker will remain unchanged at 1.034%.

According to the firm’s 2023 annual report, as of end-2023, TCBS was 98.97% owned by domestic shareholders, including 94.17% by institutions and 4.8% by individuals, and 1.03% by foreigners.

Major shareholders controlled a combined 94.17% stake, the report said, without providing the identity of the shareholders.

TCBS earned a net profit of VND2,226 billion ($91.75 million) in the first half of this year, up 187% year-on-year.