The logo of Techcombank Securities (Photo courtesy of TCBS) While none too significant, some companies have announced plans for capitalraising through additional share issuances after the 2023 Annual GeneralMeeting of Shareholders.
Particularly, Techcombank Securities JSC (TCBS) set a key plan of releasingprivate shares worth more than 10 trillion VND (426.3 million USD), with theissuance date starting from the end of the second quarter to the beginning ofthe thir quarter.
TCBS's charter capital is now approximately more than 1.1 trillion VND. If theplan is completed, the company's charter capital will increase to about 11.1trillion VND, exceeding its equity to over 21 trillion VND and listing TCBS inthe top securities companies with the largest equity in the industry.
According to TCBS, this is a strategic step to make the company become thelargest technology asset management company in Vietnam in terms of equity,profit and operational efficiency in core areas.
Tien Phong Securities Corporation is also expected to issue another 200 millionshares to double its charter capital, from 2 trillion VND to 4 trillion VND,with two options. One is to issue stock purchase rights for existingshareholders, while the other is through private placement. The implementationdate is set to be in 2023 or the first quarter of 2024.
Meanwhile, shareholders of Viet First Securities Corporation just approved acapital increase plan, expected to triple its size to more than 2.4 trillionVND through private placement and share issuance at the ratio of 1:1. Thesecurities firm plans to use the additional capital to serve proprietarytrading and margin lending.
Vietcap Securities JSC also approved a plan to release more than 100 millionshares to pay dividends at the rate of 30%, and 2 million ESOP shares at theprice of 12,000 VND a share. Once the issuance is successful, the chartercapital of VCI will rise to more than 5.38 trillion VND.
Similarly, VIX Securities JSC wants to issue more than 29 million shares to paydividends for existing shareholders and more than 58 million bonus shares atthe rate of 15%, if the issuance is successful, its charter capital will riseup to nearly 6.7 trillion VND.
Even though it has not been officially announced, the leading broker, VPBankSecurities is expected to issue ESOPs through a private placement in 2023.
As the market has not yet been active and the liquidity remains at low levels,plans to mobilise new capital from existing shareholders become morechallenging. Therefore, most securities companies choose to offer privateplacements or issue shares to pay dividends to increase charter capital.
From 2021 to early 2022, when the stock market was booming, issuing new shareswas the main momentum of securities companies' capital-raising strategies dueto the sudden high demand from investors./.
VNA
