Banks seek opportunities from securities companies
In the past few months, the market has continuously witnessed remarkable M&A (mergers and acquisitions) deals of securities companies. Many companies have changed owners, the new group of shareholders are big companies, in which many of the new owners are banks.
One of the most prominent events in the last months of 2024 is that Public Bank Vietnam Limited will complete the additional contribution of VND 865 billion to Public Bank Vietnam Securities Company Limited, thereby increasing the company's charter capital to VND 1,000 billion.
Previously, in June 2024, the State Securities Commission (SSC) approved the transfer of 100% of the capital at this securities company between Public Bank Vietnam and RHB Investment Bank (Malaysia). Thus, 4 months after changing ownership, Public Bank Vietnam Securities Company Limited received a large additional capital injection.
Also in mid-June 2024, HDBank officially became a strategic investor owning 30% of HD Securities' capital after the private share issuance. HDBank spent a total of VND 658 billion to own 43.8 million shares, with an issue price of VND 15,000/share. At the same time, HD Securities increased its charter capital from VND 1,023 billion to VND 1,461 billion.
HDBank is not a rare bank to acquire a securities company in recent times. VPBank previously acquired ASC Securities JSC and changed its name to VPBank Securities JSC. This bank also continuously invested capital, pushing VPBank Securities' charter capital to VND15,000 billion, the highest in the securities industry.
Many small companies change ownership.
In early October 2024, Inter Pacific Securities Sdn Bhd (Malaysia) transferred 4 million shares of Saigonbank Berjaya Securities JSC (SBBS) to Chairwoman of the Board of Directors Nguyen Thi Huong Giang and officially withdrew from SBBS.
Meanwhile, Ms. Giang continued to buy 5 million SBBS shares and increased her ownership ratio to 60.19%, consolidating her power at SBBS. In contrast, Saigon Joint Stock Commercial Bank for Industry and Trade reduced its ownership ratio from 11% to 9.43% with 3.3 million shares.
Hai Phong Securities Joint Stock Company (Haseco, UPCoM: HAC) had unexpected changes when Vu Duong Hien - Chairman of the Board of Directors and Deputy General Director divested all 24.29% of capital at Haseco. Board members and related people also sold all capital and many leaders resigned.
Along with that, there were two new shareholders, Mr. Tran Anh Duc and Mr. Vu Hoang Viet, when both spent hundreds of billions of VND to hold 19.94% and 24.87% of the company's shares, respectively. Notably, a "new factor" is Mr. Ninh Le Son Hai, from the deputy head of the information technology department at Haseco, who was appointed as Chairman of the Board of Directors from September 21, 2024.
At Royal International Securities Joint Stock Company, on September 23, 2024, the change of ownership was almost completed when the company officially changed its name to UP Securities Joint Stock Company, and at the same time used a new brand identity, website, trading platform, email and fanpage.
For example, Viet Tin Securities Joint Stock Company (VTSS) changed its name to VTG Securities Company (VTGS) and moved its headquarters from Hanoi to Ho Chi Minh City after TIN Global Pte. Ltd - a Singaporean enterprise acquired 49% of VTGS shares...
It can be seen that M&A activities of securities companies are becoming increasingly vibrant with the participation of both domestic and international investors. The increasing presence of banks in the securities sector, along with the transformation of securities companies, shows positive prospects for the Vietnamese stock market.
According to Kirin Capital's forecast, the M&A trend of securities companies will continue in the coming time and may be stronger when the Vietnamese stock market is upgraded from a frontier market to an emerging market. Especially the trend of international investors continuing to seek to buy domestic securities companies.
Kirin Capital experts analyzed that the low cost of capital of foreign securities companies will be a bright spot in the eyes of investment funds with low margin interest and transaction fees. This opens up great opportunities, but also poses a big challenge for domestic securities companies under the pressure of competition with foreign securities companies.
