F88 to conduct another major stock split, more than double chartered capital

F88, a leading consumer finance company in Vietnam, plans to carry out a large stock split and more than double its chartered capital this year through bonus shares, a public offering, and an employee stock ownership plan (ESOP).

According to documents prepared for the company’s 2026 AGM, the board of directors will propose issuing 136.5 million shares to increase charter capital from over VND1.1 trillion to nearly VND2.47 trillion ($93.94 million).

Specifically, F88 will issue 110 million bonus shares from equity sources at a 1:1 ratio; offer 22 million shares to the public, equivalent to 20% of total outstanding shares; and issue 4.4 million shares under an ESOP program.

F88 first listed on the stock market on August 8, 2025 with 8.26 million shares. The company recently carried out a large stock split at a 1:12 ratio, meaning each existing share received 12 additional shares.

As a result, the number of outstanding shares surged from 8.26 million to 110.1 million, while the share price adjusted from around VND1.5 million ($57.14) to roughly VND130,000 ($4.95) per share.

The company is preparing for another major stock split this year, which could further lower the share price to levels more accessible to retail investors. According to management, the move is intended to broaden the shareholder base and make the company more widely held.

For the planned public offering of 22 million shares, the offering price will be determined by the board but must not be lower than the book value per share in the 2025 consolidated financial statements, which stands at VND22,240 ($0.85). It must also not be below 70% of the average closing price of F88 shares over the five most recent trading sessions.

Proceeds from the issuance will be used to increase capital to support its pawn lending operations across the F88 pawnshop network.

Under the ESOP program, shares will be issued at VND10,000 ($0.38) each and will be subject to a 19-month lock-up period. The board will also propose transferring the listing of F88 shares from the unlisted public companies market (UPCoM) to the Ho Chi Minh Stock Exchange (HoSE), with the timing and reference price to be decided later.

The company reported a strong performance in 2025. Revenue from sales and services reached VND3.84 trillion ($146.29 million), including accrued interest and loan interest income from pawn lending recognized in financial income. This exceeded the year's target by 7% and represented a 42% increase from 2024.

Revenue from the core lending business rose 40%, while income from insurance and other value-added services grew 55%.

Consolidated pre-tax profit reached VND908 billion ($34.59 million), surpassing the plan by 35% and doubling compared with 2024.

The company also improved efficiency, with its cost-to-income ratio (CIR) falling by 2.2 percentage points to a record low thanks to digitalization and improved risk governance. Net write-offs declined to about 70% of the average level seen during 2021-2025.

By the end of the year, the system had nearly 1.4 million cumulative customers and more than 6 million insurance contracts issued. Loan disbursement transactions increased 73% year-on-year.

The company said these results reflected major improvements in user experience on its My F88 app, which achieved a net promoter score (NPS) of 75.

In 2025, F88 expanded its network to 949 transaction offices in 34 provinces and cities, adding 81 units.

The firm began transitioning from a business model primarily based on physical branches to a broader financial services platform, highlighted by the launch of the My F88 app and strategic partnerships with MBBank, CIMB Bank, Zalo, and Vietnam Post.

These partnerships have helped diversify the portfolio of lending, payment, and insurance services across the entire network of transaction offices, while significantly expanding the customer base beyond traditional channels.

Selective growth strategy in 2026

For 2026, F88 aims to pursue more selective growth, prioritizing asset quality, capital efficiency (ROE and ROA), and financial discipline rather than expansion at all costs.

The company plans to increase the number of transaction offices to 1,000 this year, adding only 51 units compared with the 81 opened in 2025.

Net outstanding loans (excluding portfolios managed for CIMB and MBBank) are expected to rise 33% to over VND7.5 trillion ($285.79 million). Revenue from sales and services is projected to increase 42% to overr VND5.46 trillion ($208 million), while pre-tax profit is expected to grow 25% to over VND1.13 trillion ($43.19 million).

However, analysts note that while the company plans large share issuances, profit growth is expected to be slower than revenue growth, which could weigh on capital efficiency indicators such as ROE and earnings per share (EPS).