Techcom Securities becomes largest broker in Vietnam by capital base

Techcom Securities JSC (TCBS) has become the largest securities company in Vietnam by charter capital after finishing a rights offering last week.

The brokerage house sold 1.74 billion shares to 73 existing shareholders at a 1-for-8 ratio, raising its charter capital to VND19.61 trillion ($771.72 million), the firms said in a disclosure.

With this new move, TCBS, a subsidiary of Hanoi-based privately-run Techcombank (HoSE: TCB), has become the largest securities company in Vietnam by charter capital.

This position may change when Ho Chi Minh City-based Saigon Securities Inc. (HoSE: SSI) finishes issuing 151 million shares at VND15,000 ($0.59) apiece to raise its capital base to VND19.64 trillion ($773.42 million). SSI issued 302 million shares in mid-September to lift the charter capital to VND18.13 trillion.

Right behind TCBS and SSI are VNDirect, VPBankS, VIX, SHS, HSC, Vietcap, ACBS, and Mirae Asset regarding charter capital.

Several brokerage houses have plans to enhance their financial capabilities to meet margin demand and serve foreign investors who are now eligible to buy local shares without prefunding requirements thanks to the enactment of Decree 68 earlier this month.

TCBS is now the biggest margin lender with VND25.5 trillion ($1 billion) as of September 30.

It earned a net profit of VND3.1 trillion ($112.2 million) in the first three quarters of this year, up 83.5% year-on-year.