Vietcap Securities reveals reason for withdrawal from digital asset project

Ho Chi Minh-based brokerage Vietcap Securities JSC (HoSE: VCI) said it has decided to withdraw from a digital asset project because the required charter capital of VND10 trillion ($380 million) was beyond its reach.

The company is instead focusing on raising capital to VND8.5 trillion ($323.2 million) and expanding overseas.

Board member To Hai said Vietcap was among four firms initially selected to participate in Vietnam’s pilot digital asset market earlier this year. The company joined the project in February and formed a research team but decided to withdraw in August.

“One of the main reasons was that the required charter capital for the project was up to VND10 trillion, which was beyond our capacity,” Hai told an extraordinary shareholders’ meeting on Friday.

“It’s too early to commit such a large amount to a new and untested sector, so we decided to step back,” he said, adding that future participation would depend on the next leadership team’s assessment.

Capital increase and overseas expansion

At the extraordinary shareholders’ meeting, Vietcap sought approval to raise its charter capital and establish a subsidiary in Singapore.

The board said Vietnam’s stock market is entering a more favorable period with strongly rising liquidity, especially after FTSE Russell announced on October 8 that it would upgrade Vietnam from a "frontier" to a "secondary emerging" market. The upgrade, effective from September 21, 2026, is expected to attract stronger foreign investment inflows.

Therefore, the board of directors finds that the company needs to increase its charter capital to strengthen financial resources to serve existing business activities, improve competitiveness, and at the same time consolidate the foundation for long-term and sustainable development.

To seize the opportunity, Vietcap plans to issue up to 127.5 million private placement shares at no less than its book value of VND18,026 ($0.7) per share as of December 31, 2024. The offering is scheduled for 2025 and Q1/2026, with a one-year lock-up period for the new shares.

Based on the estimated price, the brokerage expects to raise at least VND2.3 trillion ($90 million), of which 80% will be used for margin lending and 20% for proprietary trading.

Vietcap currently has charter capital of nearly VND7.23 trillion ($274.65 million), ranking among the 10 largest brokerages in Vietnam. If the share sale succeeds, its capital will increase to VND8.5 trillion ($323.2 million), still below leading peers such as SSI, VNDIRECT, TCBS, and VPBankS - all of which are pursuing aggressive capital expansion. SSI, for instance, aims to raise its capital to nearly VND25 trillion, while TCBS targets VND27.7 trillion.

The company also plans to set up a wholly-owned subsidiary in Singapore, to be named Vietcap Singapore Pte. Ltd, with charter capital of $29 million. The unit will engage in offshore proprietary trading and securities services.

Currently, Vietcap operates as a standalone entity with one headquarters, one branch, and three transaction offices within Vietnam. The Singapore unit will be its first overseas subsidiary.

Vice chairman Dinh Quang Hoan said the firm has received multiple invitations from international clients and advisers to join investment and advisory projects abroad, but regulatory requirements for proprietary trading necessitate an offshore presence.

Profit could exceed target by 20%

Vietcap reported strong Q3 results, with pre-tax profit of VND519 billion and net profit of VND420 billion ($15.96 million), almost doubling from a year earlier.

Nine-month pre-tax profit rose 30% year-on-year to nearly VND1.09 trillion ($41.28 million), fulfilling 76% of its full-year plan.

Hoan said the company could surpass its 2025 profit target by 10-20% thanks to favorable market conditions and its role as lead adviser for the recent IPO of VPBankS - one of the largest in Vietnam’s stock market history.

Ahead of the shareholders’ meeting, To Hai stepped down as CEO after 18 years in the position, succeeded by Ton Minh Phuong. His resignation sparked concerns among shareholders.

Hai said he had planned to retire for five years and had already delegated most executive responsibilities over the past two years. He will remain on the board and continue as a major shareholder.