Major Vietnamese broker SHS to double charter capital

Saigon-Hanoi Securities Corporation (SHS) plans to issue 894 million shares to increase its charter capital from VND8.13 trillion to VND17.07 trillion ($667.6 million), making it one of the top three securities firms in term of charter capital.

Under its newly announced plan, SHS will issue more than 40.6 million shares as dividend for 2023 at a ratio of 5% and 40.6 million others to increase capital from equity at a ratio of 5%, and offer over 813 million shares to existing shareholders at a ratio of 100%.

This is a strategic move to enhance the company's financial capacity, expand its operations, and strengthen its position in the stock market, SHS wrote in a release.

In addition to the capital hike plan, the broker recently announced documents to be submitted to the 2025 AGM, which will be held on April 10 both online and offline.

At the meeting, SHS will present its business plan for 2025, targeting revenue of nearly VND2.52 trillion ($98.55 million) and pre-tax profit of about VND1.6 trillion ($62.6 million), year-on-year increases of 26% and 29%, respectively.

If achieved, these figures will represent the highest revenue and pre-tax profit for SHS in the past four years.

In 2024, the company reported impressive business results, with total revenue reaching nearly VND2 trillion ($78.22 million), surpassing the set target by 8.3%.

Its pre-tax profit amounted to VND1.24 trillion ($49.42 million), or 119.7% of the plan, while net profit hit nearly VND1.02 trillion, marking a strong growth of 181.6% compared to the previous year.

The firm will also present its profit distribution plan for 2024, which includes allocating VND40 billion ($1.56 million) to various funds and distributing more than VND813 billion ($31.8 million) as cash dividend at a ratio of 10%.

SHS, listed on the Hanoi Stock Exchange as SHS, closed Wednesday at VND14,600 ($0.57) per share.