VPBank Securities on track to be largest securities firm

October 29, 2022 - 10:43
The company plans to offer 608 million shares to rise its charter capital to VNĐ15 trillion, becoming the securities company with the largest charter capital in Việt Nam.
VPBank Securities office in Hà Nội. — Photo proce.vn

HÀ NỘI — VPBank Securities Corporation has just announced it would offer shares to existing shareholders and increase its charter capital, according to the minutes and resolutions of the Extraordinary General Meeting of Shareholders on October 24.

Specifically, the company plans to offer 608 million shares, equivalent to the total issuance value at par value of VNĐ6.08 trillion (US$245 million). The offering ratio is 1:0.6816, which means that a shareholder who owns 10,000 share will be able to buy 6816 shares. 

The offering price is expected to be VNĐ10,000 a share, with the implementation time set to be from the fourth quarter of 2022 to the first quarter of 2023, right after the approval of the State Securities Commission (SSC).

The amount of more than VNĐ6 trillion from this offering will be used to supplement capital for quarterly lending (30 per cent), proprietary trading (60 per cent) and other activities (10 per cent).

If the plan is successful, the charter capital of VPBank Securities will increase from VNĐ8.92 trillion to nearly VNĐ15 trillion, becoming the securities company with the largest charter capital in Việt Nam, surpassing SSI Securities Corporation (VNĐ14.91 trillion) and VNDirect Securities Corporation (VNĐ12.2 trillion).

Regarding business results, in the third quarter financial statement, the firm's operating revenue reached nearly VNĐ287 billion, more than 10 times the figure of the same period last year thanks to revenue from bonds, brokerage, margin lending and advances. It did not earn from bond advice services in the third quarter of last year. 

Accounting for a large proportion of the revenue structure is interest income and receivables of more than VNĐ95 billion and profit of VNĐ93 billion from selling FVTPL (fair value through profit and loss) assets. As a result, the company reported a profit of nearly VNĐ177 billion. Last year, the securities firm lost over VNĐ300 million.

VPBank Securities' profit after tax in the first nine months was more than VNĐ251 billion, 78 times the figure of the same period last year. As of September 30, the outstanding balance of margin loans and advance payments of VPBank Securities reached over VNĐ3.59 trillion.

VPBank Securities was renamed from ASC Securities in early 2022, after VPBank decided to acquire ASC with a charter capital of only VNĐ56 billion. After the change of owner, the securities company has continuously increased its capital to VNĐ269 billion in February, and then to VNĐ8.92 trillion, becoming one of the leading securities companies in the industry. — VNS