Vietnamese brokerage DNSE plans to issue bonds worth $134 mln

Vietnam’s DNSE Securities JSC plans to increase revenue by 18.2% and pre-tax profit by 61.8% in 2026, while proposing a dividend of 7% of charter capital and a VND3.5 trillion ($133.5 million) bond issuance to strengthen its financial capacity.

DNSE has released documents for its 2026 AGM, scheduled for 1:30 p.m. on March 26, 2026. The meeting will be held in a hybrid format, both in person and online, at the Pullman Hanoi Hotel.

Challenging growth targets, 7% dividend plan

According to the proposal submitted to shareholders, DNSE’s management believes Vietnam’s stock market in 2026 will continue to be influenced by global macroeconomic conditions and monetary policy. However, the market is expected to maintain positive momentum thanks to a stable economic foundation, strong liquidity, and expectations of a future market status upgrade.

Based on this outlook, DNSE has set relatively ambitious business targets, aiming for total revenue of VND1,736 billion ($66.22 million) in 2026, up 18.2% from the previous year, and pre-tax profit of VND550 billion ($20.98 million), an increase of 61.8%.

To achieve these targets, the company plans to continue strengthening its technology platform, applying data analytics and artificial intelligence to support trading activities, and expanding its service ecosystem to enhance the overall investment experience. DNSE also plans to further focus on dynamic investors who trade frequently.

To supplement capital for business activities, DNSE will seek shareholder approval to issue VND2,500 billion ($95.37 million) of non-convertible corporate bonds without warrants and VND1,000 billion ($38.15 million) of convertible bonds in 2026.

In terms of profit distribution, the board will propose an interim dividend for 2026 of up to 7% of charter capital, to be paid in cash and/or shares. On February 25, 2026, DNSE completed a cash dividend payment for 2025 at a rate of 7%.

The 2025 payout marked the fourth consecutive year the company has maintained a cash dividend policy, reflecting stable business performance and a commitment to delivering sustainable value to shareholders.

DNSE will also submit a plan to issue 4,282,500 shares under an employee stock ownership plan (ESOP) in 2026, equivalent to 1% of its projected charter capital at the time of issuance.

In addition, shareholders will consider proposals to introduce covered warrants and to establish a securities company at the Ho Chi Minh City International Financial Center, among other items.

Financial foundation strengthened by technology strategy

According to its audited financial statements, DNSE ended 2025 with results exceeding its targets. Revenue reached VND1,467 billion ($55.96 million), up 77% year-on-year, while pre-tax profit rose 50% to VND340 billion ($12.97 million). Total assets as of December 31, 2025 stood at VND15,139 billion ($577.49 million), a 42% increase from a year earlier.

Revenue growth was mainly driven by securities brokerage income, which surged 179%, and interest from margin lending and receivables, which increased 54%, reflecting strong performance in the company’s core business segments.

DNSE is currently offering 85.65 million shares to existing shareholders. Once the issuance is completed, its charter capital is expected to rise from VND3,426 billion to VND4,282 billion ($163.34 million). The subscription ratio is 4:1, with the deadline for registration and payment set for March 16, 2026.

In relation to the offering, DNSE’s major shareholder Encapital Financial Technology JSC has registered to transfer rights to purchase 168.3 million shares, though the transferee has not yet been disclosed.

Encapital currently holds 168.3 million DNSE shares, equivalent to a 49.12% stake, which is expected to fall to 39.3% after the transfer of subscription rights. Nguyen Hoang Giang, chairman of DNSE and also CEO of Encapital, directly owns more than 2.7 million shares, representing 0.79% of DNSE’s charter capital.

Encapital, founded in 2020 by Giang and partners, operates in financial technology and software development. In terms of fundraising activities, the company in late 2025 fully repaid VND104.5 billion ($3.99 million) in principal and interest for bond lot ECF12401 on schedule, demonstrating its financial capacity and credibility in the capital market. Encapital currently has two outstanding bond issues, ECH12501 worth VND180 billion and ECF12502 worth VND280 billion ($10.68 million).

Since Encapital acquired DNSE in 2020, its role as a strategic shareholder has helped drive the securities firm’s rapid expansion and business growth, supported by a strategy focused heavily on technology applications in finance and securities.

Over the past five years, this strategy has proven effective and will remain a long-term direction for the company. DNSE’s management has repeatedly emphasized investments in system speed, stability and security, as well as differentiated customer acquisition approaches through B2B2C partnerships to build competitive advantages in the market.