Saigon Securities regains ‘crown’ as largest broker in Vietnam by capital base

Saigon Securities Inc. (HoSE: SSI) has overtaken VNDirect Securities to again become the largest brokerage house in Vietnam by charter capital.

SSI has completed the issuance of 301.82 million bonus shares to 73,875 shareholders at a 100-for-20 ratio, raising the volume of outstanding shares to 1.81 billion, the broker said in a filing to the Ho Chi Minh Stock Exchange. SSI has 1.99 million treasury shares.

As such, the HCMC-based broker increased its charter capital from VND15,111 billion ($610.73 million) to VND18,130 billion ($732.75 million), higher than VND15,223 billion of Hanoi-based VNDirect Securities (HoSE: VND).

In July, VNDirect sold 244 million shares via a rights offering and issued nearly 61 million bonus shares, lifting its capital base from VND12,178 billion ($492.2 million).

To secure the issuance, SSI used VND2,964 billion ($119.8 million) from its capital surplus and deducted VND58.25 billion from the capital reserve fund.

In addition to the bonus share issuance, SSI plans to pay a cash dividend at a 10% ratio, or VND1,000 (4 U.S. cents), with the payout date set for October 18.

SSI has also received approval from market authorities for a plan to sell 151 million shares to existing shareholders at VND15,000 ($0.61) apiece. The proceeds, estimated at VND2,267 billion ($91.62 million), will be used to finance its investment activities and margin lending.

If the issuance materializes, SSI will raise its capital base further to VND19,645 billion ($794 million).

Meanwhile, Hanoi-based Techcombank Securities JSC is seeking approval from shareholders for resuming a plan to raise its charter capital eight-fold to VND19,613 billion ($797 million).

SSI shares ended down 0.18% at VND27,550 ($1.12) each on Thursday.