Guotai Junan Securities Vietnam to double capital base for margin lending

Hanoi-based Guotai Junan Securities (Vietnam) JSC, 50.97% owned by Hong Kong’s Guotai Junan Securities, has approved a plan to double its charter capital, aiming to scale up its margin lending.

As per a plan approved at an extraordinary general meeting on Tuesday, the brokerage house will issue 69.35 million shares to existing shareholders at a 1-to-1 ratio. The selling price will be decided by the board of directors.

Of the proceeds, 75% will be used to finance margin lending activities, 10-15% for developing derivatives, and the rest for investment banking.

The last time the firm raised its charter capital was in 2019, to VND693.5 billion ($28.14 million).

Guotai Junan Securities (Vietnam) JSC was established in 2007 under VNS Securities JSC with charter capital of VND161 billion ($6.53 million) and renamed Vietnam Investment Securities JSC in September 2011. It welcomed the first foreign shareholder, China Zhejiang 001 Group, in November 2014.

In October 2019, Guotai Junan International Holdings Limited completed the purchase of 35.35 million shares or 50.97% ownership in the firm, becoming a major shareholder. The firm had its name changed to Guotai Junan Securities (Vietnam) two years later.

Guotai Junan Securities (Vietnam), listed on the Hanoi Stock Exchange as IVS, earned a pretax profit of VND33.1 billion ($1.34 million) in 2023, up 47% year-on-year. Its assets totaled VND765.7 billion as of end-2023.

IVS shares closed at VND12,400 ($0.5) apiece on Tuesday.