Public Bank Securities Vietnam to hike capital 7-fold after acquisition deal

Public Bank Securities Vietnam Company Limited says it will increase its charter capital by 7.4-fold four months after Public Bank Vietnam (PBVN) completed acquiring the broker from its Malaysian compatriot RHB Investment Bank (RHBIB).

In an announcement on Tuesday, Public Bank Securities Vietnam said its parent bank will inject VND865 billion ($34 million) to help it lift its charter capital to VND1 trillion ($39.32 million).

PBVN will transfer the funds to the escrow account of the securities company opened at a commercial bank in Vietnam once the State Securities Commission of Vietnam (SSC) approves the move.

The cash transfer is expected to be completed by the end of this year, it added.

Hanoi-based Public Bank Securities Vietnam, formerly RHB Vietnam Securities, was established in November 2006 with a charter capital of VND9 billion ($353,630 at the current forex rate). RHBIB became a strategic partner after acquiring a 49% stake and wholly acquired the broker in 2018.

In June 2024, the SSC approved the transfer of a 100% stake in the broker between PBVN and RHBIB as well as the change in its name.

Public Bank Securities Vietnam incurred losses during the 2020-2023 period. The broker made a loss of VND2.74 billion ($107,550) in the first three quarters of this year, a slight improvement from a loss of VND3.86 billion a year earlier.

However, it still recorded retained earnings of VND20.13 billion ($791,040) as of September 30.