‘New generation’ firm DNSE Securities to list on HCMC bourse

DNSE Securities will list on the Ho Chi Minh Stock Exchange (HoSE) soon after completing its initial public offering (IPO) in the second or third quarter, the broker said Thursday.

The company aims to become a new generation securities company using technology to simplify investment processes, it added.

At a roadshow highlighting investment opportunities with DNSE Securities, chairman Nguyen Hoang Giang said the firm plans to offer 30 million shares in the IPO, which will be held online for the first time in the Vietnamese stock market.

With a starting price of VND30,000 ($1.22) per share, the firm hopes to mobilize VND900 billion ($36.66 million) towards providing sales proceeds advance services, margin trading and proprietary trading activities as well as making infrastructure investments, he said.

So far, DNSE Securities has received nearly 2,000 registrations to buy its shares. The registration will remain open until January 24, he added.

Giang also said the company has developed trading software with "superior" management solutions like transparent and flexible profit and loss management, as also a self-processing margin call system.

DNSE is a leading firm in applying artificial intelligence and launching virtual brokerage Ensa in the form of chatbot. It is also the first securities company to integrate stock trading on an e-wallet (Zalo Pay). After five months, more than 350,000 customer accounts have been opened on the e-wallet.

Giang said that three years since shifting to the technology securities model, the firm manages about 1.4 billion shares with a value of VND26 trillion ($1.06 billion), 10 times higher than in 2020. It has been always a top securities company in terms of newly opened accounts, he added.

DNSE has recorded impressive growth over the past three years, with operating revenue rising from VND22 billion in 2020 to VND452 billion ($18.4 million) in 2022; and after-tax profits increasing from VND2 billion to VND78 billion ($3.18 million).

In the first three quarters of 2023, its revenue topped VND500 billion ($20.37 million) for a year-on-year increase of 64%; while after-tax profit rose to VND131 billion ($5.34 million), 4.4 times higher than the same period in 2022.

Giang said Vietnam was experiencing a boom time for stock investors. The stock market is also facing great opportunities as it will soon apply a trading system provided by the Korea Exchange (KRX) and sees the prospect of an upgrade from “frontier” to “emerging” market status. Low interest rates and economic recovery will open windows to further growth.

In the next five years, DNSE aims to have 5 million customers, a capitalization of VND72 trillion ($3 billion) and annual profits of VND2.4 trillion ($97.8 million).

Before the IPO, PYN Elite Fund from Finland signed an agreement to acquire a 12% stake in DNSE, becoming the Vietnamese broker’s second largest shareholder.

Giang said that with capital raised through the IPO and investment from a reputable foreign fund, DNSE will generate strong growth momentum as an investment technology platform, keeping up with the trends in the world financial industry.