Need to prepare enough capital
With the approval of Circular 68/2024/TT-BTC, officially removing the "pre-funding" bottleneck, the Vietnamese stock market has taken an important step forward in the upgrading process.
According to experts, securities companies are the ones directly affected by the new Circular 68 coming into effect. Not only do they have to increase their financial capacity to support foreign investors in case they do not have enough money, but securities companies themselves must also greatly strengthen their appraisal and assessment of the financial capacity of foreign institutional investors.
According to Ms. Nguyen Hoai Thu - Director of Securities Investment Division of VinaCapital: Securities companies have almost prepared the transaction process for foreign institutional investors. However, it is necessary to ensure that this process is carried out smoothly in practice, without any problems or impacts on investors' transactions.
In addition, securities companies also need to prepare sufficient capital to provide capital for investors' transactions. Risk control for securities companies is very important to avoid foreign investors buying securities but then being unable to pay.
Therefore, to prepare for the "playground" of upgrading and supplementing capital for company operations, a series of securities companies have announced plans to increase capital. The proceeds from the issuances of enterprises are expected to be used to invest in developing information technology systems, supplementing capital for self-trading and underwriting activities, supplementing capital for margin lending...
Capital raising race of the "big guys"
Most recently, Techcom Securities Corporation (TCBS) announced a plan to increase its capital by 9 times, to nearly VND20,000 billion. Accordingly, the company will issue an additional 1.74 billion shares, increasing to more than 1.96 billion shares, equivalent to an increase in charter capital to VND19,613 billion. If the issuance is successful, TCBS will become a securities company with the top charter capital in the market.
At the end of August, SSI Securities Corporation was granted a certificate of registration for public offering of securities by the State Securities Committee. SSI plans to issue a total of more than 453.3 million shares. After the successful issuance, SSI's charter capital is expected to increase from more than VND 15,111 billion to nearly VND 19,645 billion, consolidating its No. 1 position in terms of capital among securities companies.
Previously, in July, VNDirect Securities Corporation (VND) successfully offered nearly 244 million shares to existing shareholders, and at the same time paid a stock dividend at a rate of 5%, equivalent to issuing nearly 61 million additional shares. Accordingly, VNDirect's charter capital increased from VND12,178 billion to nearly VND15,223 billion.
In the race to increase capital, SSI and VNDirect have been competing with each other in recent years. From 2019 to now, SSI has continuously carried out large capital increases. Compared to the capital of 5,100 billion VND in January 2019, SSI's charter capital has now doubled.
If the upcoming issuance is completed as planned, the charter capital of SSI and TCBS will increase to nearly VND20,000 billion, in which SSI continues to hold the position of the company with the largest charter capital with VND19,645 billion, TCBS holds the second position with capital of VND19,613 billion.
