SHS Securities plans to issue nearly 104 million shares for existing shareholders

June 16, 2021 - 17:59
SHS Securities' office in Hà Nội during working hours. Photo

HÀ NỘI — Saigon - Hanoi Securites JSC (SHS) will submit a fundraising plan to shareholders at its general meeting, scheduled for June 16.

Accordingly, the securities firms plans to issue 103.6 million shares for existing shareholders with a rate of 10 per cent, meaning a shareholder who owns two shares can buy one more. With the selling price expecting at VNĐ13,500 per share, the company can earn nearly VNĐ1.4 trillion (US$61 million).

SHS Securities will spend 40 per cent of the amount for margin loans, 40 per cent for bonds, valuable papers investments, and the rest for investment. 

The company also plans to issue 10.36 million common stocks from the owner's equity with a rate of 5 per cent, meaning a shareholder with 100 shares will receive five new ones. 

At the par value, SHS is expected to earn VNĐ104 billion ($4.5 million) after issuing new stocks. This amount will be spent for business activities. 

Regarding issuing the employee stock ownership plan (ESOP), SHS Securities will issue 4 million units, or 1.93 per cent of the company's outstanding shares.

Issuing price is estimated at VNĐ12,000 per share. These ESOP shares are restricted from being transferred for one year.

Currently, SHS securities' charter capital is nearly VNĐ2.1 trillion ($90.4 million). If all three issuances are successful, the company's charter capital is expected to rise to more than VNĐ3.25 trillion ($141.7 million).

Last year, the firm's revenue increased 61.5 per cent year-on-year to over VNĐ1.8 trillion ($78.9 million), leading to a gain of nearly 195 per cent in profit after tax to more than VNĐ754.3 billion ($33 million).

In 2021, it set a target of earning nearly VNĐ1.9 trillion ($82.3 million) in revenue, up 4.3 per cent over last year, but lowered its profit before tax to VNĐ751.2 billion ($32.8 million).

On the stock market, SHS shares ended Wednesday at VNĐ41,500 per share, down 3.94 per cent. The company shares jumped 62.2 per cent since the beginning of the year. VNS