VPS Securities Joint Stock Company announced a plan for a private share offering in a written shareholder consultation document. The company will issue shares equivalent to 9,8% of its outstanding shares, subject to a one-year transfer restriction. This move aims to supplement capital for margin lending.

The selling price remains undisclosed. Should the transaction finalize, VPS's charter capital will climb from 24,349 billion VND to 26,749 billion VND, surpassing USD 1 billion. This positions VPS as the third securities company, after SSI and TCBS, to plan a capital increase beyond USD 1 billion.

Increasing capital enables securities companies to expand operations and capture greater market share, especially in margin lending. State Securities Commission regulations cap the ratio of margin outstanding to owner's equity at 200%.

Over the past year, VPS led the securities industry in capital raising, with shareholders contributing over 18,600 billion VND. The company now ranks second in the market for this metric.

During the annual meeting in April, Chairman Nguyen Lam Dung stated that VPS had no immediate plans for a capital increase this year. He added that the company would monitor market conditions closely, considering a capital raise if market growth accelerated and foreign investor participation increased.

Established in 2006, VPS Securities was initially a subsidiary of VPBank, which divested in 2015. By the end of Quarter I, the company commanded the largest brokerage market share on the Ho Chi Minh City Stock Exchange (HoSE) at 15,32%.

For Quarter I, VPS reported a pre-tax profit of 1,547 billion VND, marking a 685 increase from the previous year's same period. Total assets surpassed 53,200 billion VND, including over 30,000 billion VND in margin lending.

By Trong Hieu